American Express 2009 Annual Report Download - page 15

2/3
2/3 OF THE WORLD’S
consumer payments are still
made using cash and checks
13
EVERYDAY SPENDING
Today, 71 percent of spending
on our cards comes from non-
T&E purchases
A Differentiated Business Model
e American Express business model is like no
other. We are the only company with a strong
global presence in all parts of the payments chain
as a card issuer, network, processor and merchant
acquirer. We oer a broad range of products and
services for consumers, small businesses, mid-
size companies and large corporations. And we
are spend-centric rather than lend-centric like
the majority of our competitors. ese dierences
give us multiple sources of revenue and superior
economics.
A BREED APART
The differences I’ve outlined help define us as a
unique competitor. But to understand American
Express, and our potential, it’s important to take an
even broader view of the company.
Yes, we are a payments company that processes
billions of transactions around the world, but
thinking of us strictly in terms of nancial services
is too narrow. It doesn’t fully capture the role we
play in our customers’ lives.
American Express is a global service company,
providing customers with exceptional access to
products, insights and experiences that enrich lives
and build business success.
is description may sound loy, but it’s quite
tangible. We see it every time we make a purchase
easier and more secure, facilitate a once-in-a-
lifetime experience, replace a lost or stolen item, or
bring in another sale or save another dollar for our
clients and partners.
It’s not about a piece of plastic, a travel office
or a soware tool we provide. It’s about using our
processing, information management, marketing
and servicing skills to create value for our
customers and earn income as a result. It’s about
the power of a relationship with American Express.
Now, let me explain how we plan to use these
assets to drive growth in 2010 and beyond.
DRIVING GROWTH
We have many opportunities for growth across our
existing businesses and in newly emerging areas.
ese include:
Growing our existing payments businesses — Global
payments will continue to migrate away from cash
and checks, and customers will seek out companies
that offer greater value, benefits and service in
the new economy. More than two-thirds of global
consumer payments still take place via cash and
checks. To tap this opportunity, we will focus on
growing our share-of-wallet among consumers,
small businesses and corporations. Front and
center in our plans will be enhancing our charge,
prepaid, premium lending and co-brand oerings;
broadening merchant acceptance; maximizing
global network partnerships; and expanding
commercial card and travel solutions.
Tapping new sources of fee revenues
— We have a
powerful and unique set of assets, including our
closed-loop network, information management
capabilities, rewards expertise, and servicing
network. We are only just beginning to tap their
potential to serve our customers and create new
sources of income. For example, we recently
launched two new lines of business. LoyaltyEdge
AMERICAN EXPRESS COMPANY