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AmEx (AXP) to Offer Digital Payment Benefits in Australia

In a bid to benefit its consumer and small business Card Members, American Express Company AXP recently collaborated with Australia-based payment solutions provider Cuscal to introduce the card bill PayID service throughout the country. The new service will be launched on the New Payments Platform (NPP), which is handled by the domestic payments organization of Australia - Australian Payments Plus (“AP+”).

The tie-up with Cuscal will provide an opportunity for American Express Card Members to create a unique PayID for availing the innovative service. And the PayID creation will be made possible and seamless by leveraging the APIs of Cuscal.  Subsequently, the PayID can be stored in the capacity of a payee in the digital banking channel of the bank in which an American Express Card Member holds an account.

American Express Card Members can now directly make repayments for purchases (that they had made using an AXP card) through their bank accounts and immediately liberate themselves from the credit that they owed to AXP. The process requires a Card Member to send payment from their bank account to their individual PayID. Consequently, from the PayID, Cuscal will direct the funds in real time to the American Express Card account.

Apart from ensuring an immediate and hassle-free payment experience for Card Members, there are other benefits that accompany the new PayID service. A greater sense of transparency and security is injected within the service. As a testament to the same, a confirmation step pops up before making payments to ensure that the funds are directed to American Express and receipt of payments from the Card Member’s bank account is accompanied by a payment alert.

The recent tie-up reflects American Express’ sincere efforts to extend the widespread benefits of digital offerings to its Card Members. AXP frequently resorts to incorporating new options or enhancing existing ones within its card offerings. With the card-issuing business remaining an important source of revenues for American Express, initiatives to extend varied benefits to its Card Members are expected to keep contributing to AXP’s top-line growth.

Also, the latest move in Australia is likely to enable American Express in capturing a significant share of the digital payments market of a country that continues to witness widespread adoption of digital means.

Shares of American Express have gained 10.1% year to date compared with the industry’s 3% growth. AXP currently carries a Zacks Rank #2 (Buy).

Zacks Investment Research
Zacks Investment Research


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Other Stocks to Consider

Some other top-ranked stocks from the Finance space are Trinity Capital Inc. TRIN, Stellus Capital Investment Corporation SCM and Postal Realty Trust, Inc. PSTL, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Trinity Capital surpassed estimates in each of the trailing four quarters, the average surprise being 13.37%. The Zacks Consensus Estimate for TRIN’s 2023 earnings suggests an improvement of 7.5%, while the same for revenues suggests growth of 17.6% from the corresponding year-ago reported figures. The consensus mark for TRIN’s 2023 earnings has moved 9% north in the past 30 days.

Stellus Capital's earnings outpaced estimates in three of the last four quarters and missed the mark once, the average surprise being 5.71%. The Zacks Consensus Estimate for SCM’s 2023 earnings suggests an improvement of 29%, while the same for revenues suggests growth of 28.3% from the corresponding year-ago reported figures. The consensus mark for SCM’s 2023 earnings has moved 6.6% north in the past 30 days.

The bottom line of Postal Realty outpaced estimates in two of the last four quarters, matched the mark once and missed the same on the remaining one occasion, the average surprise being 4.08%. The Zacks Consensus Estimate for PSTL’s 2023 earnings suggests an improvement of 1%, while the same for revenues suggests growth of 17.6% from the corresponding year-ago reported figures. The consensus mark for PSTL’s 2023 earnings has moved 2% north in the past 30 days.

Shares of Trinity Capital and Stellus Capital have rallied 24.9% and 6%, respectively, year to date. The Postal Realty stock has, however, declined 1.9% in the same time frame.

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American Express Company (AXP) : Free Stock Analysis Report

Stellus Capital Investment Corporation (SCM) : Free Stock Analysis Report

Postal Realty Trust, Inc. (PSTL) : Free Stock Analysis Report

Trinity Capital Inc. (TRIN) : Free Stock Analysis Report

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Zacks Investment Research

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