American Express (AXP) Accelerates Its U.K. Card Acceptance

American Express Company’s AXP cards can now be used at Timpson, B&M and EG Group retail locations across the UK, increasing its card acceptance. With this, American Express’s coverage in the UK would continue accelerating as leading businesses across home improvement, food-to-go and broader retail sectors are partnering with the company.AXP’s merchant acquiring business builds and manages relationships with merchants around the world who accept American Express cards. After signing new merchants to accept their cards, AXP generates revenue by charging them a fee or a discount rate, which is agreed upon beforehand. Discount revenues are the largest revenue source of the company and are likely to increase as more merchants join hands with AXP.As a growing number of merchants acknowledge the value of AXP’s loyal and high-spending consumer base, they stand to benefit from increased payment options made available to customers. Moreover, American Express would provide marketing and fraud-prevention solutions, data analytics and other services to merchants, improving their business position.Timpson, a family-owned retailer, now allows American Express cardholders to use their cards across 2000 stores in its portfolio. B&M, a variety retailer, has also started accepting AXP’s cards to leverage its loyal customer base.Amex cards are now accepted at around 1000 food-to-go spots in petrol station forecourts and in outlets like Starbucks, Burger King and Subway, under a recent deal with EG Group. Along with these, AXP has also accelerated coverage across home improvement and charity shop sectors.The U.K. represents a significant portion of AXP’s billed business outside the United States. The total number of U.K. locations accepting Amex cards increased 30% year over year. The company would also implement its Shop Small campaign, under which it gives incentives and rewards to cardholders for spending in small businesses.The cardholders benefit from rewards and offers provided by AXP. With the increasing usage of AXP cards across the UK, the company’s rewards-related expenses are also likely to climb up.Price PerformanceShares of American Express have gained 8.1% year to date compared with the industry’sgrowth of 2.5%.Image Source: Zacks Investment ResearchZacks Rank & Other Key PicksAmerican Express currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the same industry are Euronet Worldwide EEFT, Axos Financial AX andChicago Atlantic Real Estate Finance REFI. Each of these companies carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The bottom line of Euronet Worldwide outpaced estimates in three of the trailing four quarters, while it missed in one, the average surprise being 7.1%.The Zacks Consensus Estimate for EEFT’s 2023 earnings suggests an improvement of 15.5%, while the same for revenues indicates growth of 9.2% from the corresponding year-ago reported figures. The consensus mark for EEFT’s 2023 earnings has moved 1.3% north in the past 30 days.Axos Financial’s bottom line outpaced estimates in each of the trailing four quarters. The average of earnings surprises is 8.1%.The Zacks Consensus Estimate for AX’s 2023 earnings indicates a 15.1% rise, while the same for revenues suggests 22.6% growth from the respective prior-year reported figures.The bottom line of Chicago Atlantic Real Estate Finance outpaced the Zacks Consensus Estimate in three of the trailing four quarters, while it missed in one, the average surprise being 7.6%.The Zacks Consensus Estimate for REFI’s 2023 earnings indicates a 22.5% rise, while the same for revenues suggests 18.1% growth from the respective prior-year reported figures.Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries. Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Express Company (AXP): Free Stock Analysis Report Euronet Worldwide, Inc. (EEFT): Free Stock Analysis Report AXOS FINANCIAL, INC (AX): Free Stock Analysis Report Chicago Atlantic Real Estate Finance, Inc. (REFI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research
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