American Express Company
) inked a deal with Isis, a mobile payment provider to enhance
its payment service operations. Pursuant to the agreement,
American Express will integrate its American Express Serve - a
payment application, with the Isis Mobile Wallet service. This
integrated app will be rolled out nationally in the second half
The Isis Mobile Wallet services uses near field communications
(NFC) technology to help consumers make payments, redeem coupons
and present loyalty cards through their mobile phones. On the
other hand American Express Serve works as an alternative to
debit and other prepaid cards.
The co-branded app will facilitate consumers to tap and pay with
their phone at NFC enabled retail locations that accept American
Express. It allows customers to pay bills online as well as
engage in money transfers conveniently and at an affordable
price. Additionally, consumers can use their existing bank
accounts, credit or debit cards to load cash directly to their
American Express Serve account or fund. Even consumers without
access to traditional bank accounts or credit can deposit cash
directly in this account.
As per Federal Deposit Insurance Corporation (FDIC), about 70
million Americans lack bank accounts or don't have access to
credit. As a result they pay in cash and are dependent on
expensive services for bill payment or money transfers. Thus
there exists a huge demand for an inexpensive yet convenient mode
of payment in the American payment market. Through its alliance
with Isis, American Express intends to tap this opportunity. It
intends to make its American Express Serve, which is an
alternative to traditional banking services, available to
millions of consumers, thereby gaining market share.
American Express currently carries a Zacks Rank #3 (Hold). Other
payment service providers like
FleetCor Technologies Inc.
) carry a favorable Zacks Rank #1 (Strong Buy) whereas
Global Cash Access Holdings Inc.
SS&C Technologies Holdings Inc.
) both carry a Zacks Rank #2 (Buy).
AMER EXPRESS CO (AXP): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
GLOBAL CASH ACS (GCA): Free Stock Analysis
SS&C TECHNOLOGS (SSNC): Free Stock Analysis
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