American Express 2007 Annual Report Download - page 24

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MasterCard now remains the sole defendant in this case. Under antitrust law, it is liable for the damages
suffered by American Express. We plan to move forward with the litigation to hold MasterCard
accountable for the illegal actions that blocked banks from working with us for many years and to
seek full compensation for the value that would have been generated for our shareholders. The trial is
scheduled to begin in September.
In an openly competitive marketplace, our Global Network Services business has grown rapidly both
internationally and in the previously closed U.S. market. It has significantly expanded the reach of our
brand around the world and strengthened the financial performance of our company.
REDEFINING PAYMENTS
Much of the progress we achieved across the company in 2007 supports one overriding goal: to provide
our customers with uncommon service. While this objective is a constant for us, it is particularly notable
now as we approach an important milestone.
This October will mark a special occasion for us—the 50th anniversary of the American Express Card.
While American Express was not the first charge card in the market, our early entry quickly popularized
a new form of payment that would change how people shop, travel and manage their finances.
The history of our card business is really all about transformation. Since issuing our first card in 1958,
American Express has set new industry standards through continual innovation and a commitment to
our customers. For example, we were the first to introduce premium cards, broad-based reward programs,
fraud protection guarantees, consumer privacy principles, card and expense management programs for
large and small businesses, and many other features and services. Today, we stand ready to build on this
tradition in new ways.
I am confident we will do so for several reasons. Among them are the strength and diversity of our
current businesses and the ongoing evolution of American Express as a unique services company built
upon a respected brand.
We hold strong positions across a range of businesses and markets, which give us multiple sources of
revenue and avenues for growth.
• We are the largest issuer of cards, with a broad array of charge, credit and prepaid products.
• We have relationships with millions of high-spending consumers, small businesses, midsize companies
and large corporations around the world.
• We have a global network that processes hundreds of billions of dollars in transactions each year
and gives us detailed insights into the spending preferences of our cardmembers.
• We have two premier travel organizations that complement our consumer and commercial card
businesses.
These characteristics set us apart in the world of payments. Today, however, we view payments not as a
destination but as a starting point. It gives us the foundation for offering a range of services that provide
economic value and lifestyle benefits for our customers.
American Express is in the payments business, but we are much more than a payments company. We are
a rewards company that possesses the industry’s most sophisticated and wide-ranging customer loyalty
platform. We are a lifestyle services company that develops tailored experiences and offers based on real
customer insights. We are a brand-driven marketing services company that helps merchants reach the best
customers and prospects, guided by creative thinking grounded in concrete data. We are a network services
LETTER TO SHAREHOLDERS
22