What Is American Express Company and Its Services

American Express Company, or Amex, is a global financial services company that offers a wide range of services. It was founded in 1850 by Henry Wells, William Fargo, and John Butterfield.

The company is best known for its charge card, which allows users to pay for purchases without using cash or a credit card. This unique service was introduced in 1958 and has since become a staple of the company's offerings.

American Express operates in over 130 countries, making it a global leader in financial services. Its services include travel, financial, and network services.

American Express was founded in 1850 as an "express business" that carried money, packages, and valuable things from one place to another.

The US Postal Service didn't deliver large parcels yet, so private companies like American Express filled the gap.

American Express started to meet the demand for transferring money from one part of the country to another, especially during the time when many people were moving to California and other areas in the west.

Henry Wells and William G. Fargo were two important people in the express business at the time, having formed a partnership in 1844.

The American Express company was formed by the merger of three other companies, and it quickly became the most successful company transporting goods, securities, and money.

The company's headquarters were initially in a building in Manhattan, New York, and they soon bought several nearby buildings to use as stables for their horses.

In 1874, American Express moved its headquarters to 65 Broadway in the financial district of Manhattan, a location it has remained at ever since.

American Express extended its reach nationwide by arranging affiliations with other express companies, railroads, and steamship companies. This strategic move allowed the company to provide a wider range of services to its customers.

In 1857, American Express launched a money order business to compete with the United States Post Office's money orders. This marked the company's entry into the financial services industry.

Sometime between 1888 and 1890, J.C. Fargo took a trip to Europe and returned frustrated with the difficulties he faced in obtaining cash. He was unable to get cash anywhere except in major cities.

Fargo's experience led him to ask Marcellus Flemming Berry to create a better solution than the traditional letter of credit. Berry's creation, the American Express Traveler's Cheque, was launched in 1891 in denominations of $10, $20, $50, and $100.

In 2024, American Express entered into a partnership with Guavapay to broaden the payment acceptance alternatives for merchants.

This partnership marked a significant milestone for the company, as it expanded its reach and capabilities in the payment industry.

In November 2024, American Express launched Planea Tu Pago and integrated it into all Amex services and business cards in Mexico.

This new service was designed to make it easier for merchants to manage their payments and provide a better experience for their customers.

In October 2024, American Express entered into an agreement to acquire a 50% stake in Swisscard from UBS Group, a financial services company.

This acquisition was a strategic move by American Express to expand its presence in the global payment industry.

American Express was initially focused on providing reliable services to banks and other financial groups, which ultimately led them to expand into the financial sector.

By the late 1890s, American Express was issuing money orders, competing directly with banks. They had established a presence in major cities like London, Paris, Antwerp, Zurich, and Berlin.

The company's growth was evident in its new building, constructed in 1890, which was a ten-story building that replaced the old one.

By 1903, American Express had amassed assets worth around $28 million.

In 1916-17, a new building was constructed, made of concrete and steel, and shaped like an H.

The Traveler's Cheque, invented by Marcellus Flemming Berry, revolutionized cash transactions while traveling, and American Express introduced its own version, the American Express Traveler's Cheque, in 1891.

This innovative service helped establish American Express as a prominent international company, used worldwide for nearly a century until credit cards took over.

American Express has a long history of innovation in the payment industry. In 1946, the idea of a charge card for travel was first discussed.

Their first cards were introduced in 1958, and they were made of paper. Plastic cards were introduced just a year later in 1959.

The Gold Card was introduced in 1966, and it marked a significant milestone for American Express. The Platinum Card, which was introduced in 1984, had a $250 annual fee, a steep price for many customers.

Today, you can apply for the Platinum Card, and the annual fee has increased to $550. In 1987, American Express introduced the Optima card, which allowed customers to pay later, rather than in full every month.

In 2024, American Express made significant moves to expand its services. The company entered into a partnership with Guavapay to broaden payment acceptance alternatives for merchants.

In November 2024, American Express launched Planea Tu Pago and integrated it into all Amex services and business cards in Mexico. This move aimed to provide more convenience to its customers.

Here are some key events that highlight American Express' history of innovation and expansion:

In 2024, American Express made significant moves to expand its services. The company entered into a partnership with Guavapay to broaden the payment acceptance alternatives for merchants in November.

In the same year, American Express also launched Planea Tu Pago and integrated it into all Amex services and business cards in Mexico. This move aimed to provide more convenient payment options for customers.

In October 2024, the company made a major announcement, entering into an agreement to acquire a 50% stake in Swisscard from UBS Group, a financial services company. This acquisition marked a significant step in American Express's expansion plans.

Here's a brief timeline of American Express's major milestones:

In 1993, Harvey Golub became CEO, and American Express won the federal government's travel and transportation system contract. This marked a significant shift in the company's focus on providing travel-related services.

American Express issues and processes a variety of cards, including prepaid, gift, credit, and charge cards, to consumers and businesses worldwide.

American Express is both a card issuer and an acquiring bank, which means it receives revenue from both cardholders and businesses that accept their cards.

Businesses around the world accept payments on American Express cards, similar to payments processed by other major card companies like Visa and Mastercard.

The company processes transactions made with its logo-bearing cards, including high-end cards like The Platinum Card from American Express and more everyday cards like the Blue Cash Everyday Card from American Express.

American Express also offers specialized cards for specific industries, such as the Delta Skymiles Blue Card from American Express, which is designed for frequent flyers.

American Express is a global payments company that primarily offers credit and charge cards to consumers and businesses.

The company is responsible for issuing and processing its own cards, making it a one-stop-shop for cardholders and businesses alike.

American Express earns the majority of its revenue from card processing fees charged to businesses that accept Amex.

Cardholders can earn rewards on their purchases, making it a great option for those who want to get something back for their money.

Here are some key benefits of using an American Express card: