Yesterday,
American Express Co.
(
AXP
) (AmEx) announced the commencement of Payment Software Development
Kits (SDKs), which provides a complete next generation digital
range of authorization and submission solutions. Payment SDKs also
makes AmEx the first payment network in the industry to enhance its
global processing services.
Accordingly, Payment SDKs' digital operating system will enable
AmEx to better reach out to its merchants, third-party processors,
gateways and point-of-sale manufacturers across the globe. Through
this best-in-class tool, AmEx will be able to boost its operating
competence by significantly reducing development times and
enhancing its certification efficiencies for its direct
connectivity partners.
With the help of Payment SDKs, these development and
certification methods can now be achieved within days, which
earlier used to take months. Additionally, Payment SDK is also
expected to easily make available AmEx's basket of value-added
software solutions, which include SafeKey and Enhanced
Authorization, thereby enhancing the developer's experience on the
company's processing platform.
Payment SDKs will not only reduce the complexity in
certification projects but also speed up the digital payments
revolution for AmEx's merchants and cardmembers. This implies that
the company is better preparing itself to develop a strong position
in the card payment processing industry, particularly now when more
and more of the global populations are making a radical shift
toward electronic card payment systems from paper transactions such
as cash or cheques.
Hence, the new Payment SDKs will drive AmEx's efficiencies as
digital partners, thereby closely connecting its merchants with a
high-speed payment solution, thereby complying with the next
generation needs.
Overall, we believe these efforts are not only helping AmEx
improve its operating leverage and reduce time-gap to reach out to
its merchants but are also crucial for maintaining its competitive
strength against arch rivals, such as
MasterCard Inc.
(
MA
),
Visa Inc.
(
V
) and
Discover Financial Services
(
DFS
), in the card industry.
Earnings Review
AmEx reported its third-quarter 2011 operating earnings of $1.03
per share, comfortably ahead of the Zacks Consensus Estimate of 96
cents and 90 cents recorded in the year-ago quarter. Meanwhile, net
income from operations increased 13% year over year to $1.24
billion from $1.09 billion in the year-ago period.
Besides, the Zacks Consensus Estimate for the fourth quarter of
2011 is currently pegged at 98 cents per share, up about 4% over
the prior-year quarter. In the last 30 days, a one out of 16
analyst firms has reduced its estimates for the upcoming quarter,
while no upward revisions were witnessed. Meanwhile, for 2011,
earnings are expected to escalate about 19% year over year to $4.04
per share.
Currently, the shares of AmEx carry a Zacks #3 Rank, implying a
short-term Hold and long-term 'Neutral' stance.
AMER EXPRESS CO (
AXP
): Free Stock Analysis Report
DISCOVER FIN SV (
DFS
): Free Stock Analysis Report
MASTERCARD INC (
MA
): Free Stock Analysis Report
VISA INC-A (
V
): Free Stock Analysis Report
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