American Express Company (AXP) Stock Analysis

American Express’s primary competitive edge lies in its integrated business model, premium brand, and affluent customer base. Unlike Visa and Mastercard, which operate as open networks, AXP acts as both card issuer and network, allowing it to capture a greater share of transaction economics and control the customer experience end-to-end. This model supports industry-leading customer satisfaction—AXP ranked highest among credit card issuers in the 2025 J.D. Power U.S. Credit Card Satisfaction Study.

The company’s brand is synonymous with trust, service, and exclusivity. Its premium positioning attracts high-spending consumers and businesses: average proprietary basic card member spending reached $6,387 in Q3 2025, well above industry averages. The affluent customer base underpins lower charge-off rates (Q3 2025 net write-off rate: 1.9%) compared to Discover and Capital One, which serve broader credit spectrums.

AXP’s closed-loop network enables differentiated rewards, data analytics, and merchant partnerships. Its co-brand relationships—most notably with Delta, which accounts for 12% of billed business and 21% of card loans—are difficult for competitors to replicate at scale.

Merchant acceptance, historically a weakness, has improved: Amex is now accepted at 160 million locations globally, narrowing the gap with Visa/Mastercard. The company’s culture of innovation and investment in digital capabilities further supports its ability to adapt and defend its moat against fintech entrants and traditional rivals.