American Express 2003 Annual Report Download - page 18

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Expanding the Merchant Network
In 2003 we continued to expand the array of merchants who accept American Express cards, with particular
emphasis on growing coverage in retail and everyday spending locations, such as supermarkets, gas stations and
drug stores. Among our more notable signings in the United States were three leaders in the quick service restau-
rant industry: McDonald’s,
®Wendy’s and Burger King. Accepting the Card will help these partners attract new
customers, including professionals who enjoy the convenience of quick-service restaurants and whose companies
require that corporate cards be used for business-related expenses. In international markets, we signed a wide
range of everyday spending merchants. A couple of notable examples include Formosa gas stations in Taiwan and
Dutch Railways, the last major European rail system to accept the Card.
Other key signings also helped us to bring card acceptance to industries where cash or checks are the predom-
inant form of payment. For example, we have agreements with 10 major property management companies
across the United States to accept the Card for rental payments at their luxury properties. We also signed AIG
to accept the Card for insurance premium payments from their customers. These and other signings fueled
strong growth in recurring billing on the Card.
New Prepaid and Travelers Cheque Products
We also made major inroads in our strategy to grow another part of our payments business — prepaid services.
We launched the TravelFunds Card, a prepaid, reloadable card that can be used worldwide at the millions of
merchants and ATMs that accept the American Express Card.
We continued to expand the distribution channels for our prepaid products with the addition of retail, airline,
car rental, hotel and travel agency sellers, as well as postal services in Australia, Canada and the United States.
Our Gift Card, introduced in the United States in 2002, is now available in supermarkets and financial institu-
tions, as well as through online and telephone channels.
In our Travelers Cheque business, we launched The American Express Cheque-Secure Funds in Russia and
Argentina to address consumers’ desire to keep extra funds available at home.
AMERICAN EXPRESS FINANCIAL ADVISORS
American Express Financial Advisors (AEFA) made good progress in 2003, delivering improved results and
making aggressive moves to drive growth. This progress came in a challenging year, when AEFA — like all other
financial services companies — dealt with a range of issues, including uneven financial markets.
(p.16_axp)
AMERICAN EXPRESS FINANCIAL ADVISORS ASSETS OWNED, MANAGED OR ADMINISTERED — Revitalized equity
markets and stronger AEFA investment performance, coupled with the acquisition of Threadneedle Asset Management,
boosted asset levels dramatically in 2003 — to $365.3 billion from $230.6 billion. (Excluding Threadneedle, AEFA assets
owned, managed or administered increased 22 percent in 2003.)