American Express (AXP) has partnered with Alipay, a China-based digital payment platform, to make payment convenient for global travelers. With this move, American Express aims to simplify transactions for its cardholders and expand the company’s reach in the Asia-Pacific region.
The deal allows all American Express cardholders to link their cards to the Alipay digital wallet and provides access to Alipay’s extensive merchant network. As a result, AXP’s customers can easily make purchases at all stores across China without needing cash or other payment methods.
What’s in It for American Express?
The partnership positions American Express well for future growth in the Asia-Pacific region. Further, the move aligns with the company’s global expansion plans, particularly in the Chinese market. In this regard, AXP has bagged approval for a bank card clearing license in China, making it the first foreign payments network to clear RMB transactions in the region.
The move also provides American Express access to Alipay’s vast user base, which includes over 1.3 billion users as of 2024, allowing AXP to expand its customer base.
Overall, this integration positions AXP to improve user experience, streamline payments, and meet the rising demand for seamless cross-border transactions.
How Has AXP Stock Price Performed Recently
American Express stock has seen a strong performance over the past year, having gained over 37.7%. The company’s efforts to save costs, expand into new international markets, and introduce new products have fueled investor optimism. Looking ahead, the company’s strong position in the premium card market, which is growing faster than the overall card industry, supports long-term prospects.
Is AXP a Buy or Sell?
Turning to Wall Street, AXP stock has a Moderate Buy consensus rating based on nine Buys, 12 Holds, and one Sell assigned in the last three months. At $326.60, the average American Express price target implies a 10.51% upside potential.
