The U.S. based American Express company, also known as AmEx, is a New York based company that provides financial services globally.
History of American Express
Founded in 1850, the U.S. based American Express is one of the 30 components of the Dow Jones Industrial Average. According the BuisnessWeek and Interband, American Express is the 15th most valuable brand on the globe, estimating at $21.94 billion. In the total volume of credit card transactions, AmEx cards account for 24% of them. The company was founded by the owners of Wells & Company (Henry Wells), Livingston, Fargo & Company (William Fargo), and John Warren Butterfield (Wells, Butterfield & Company) to be an express mail business. At the time, the U.S. Postal Service was slow, and not many items could be mailed across the country other than letters. So, AmEx served as a lifeline for the growing nation, and the company quickly got the reputation of a simple delivery service.
The company’s main clients were banks, transporting their stock certificates, notes, currency, and more financial instruments. Eventually, the U.S. based American Express scaled down its business and started creating and selling its own financial products. The world’s first money order business and travelers cheque were launched by American Express in 1882 and 1891, respectively. The company’s first financial services earned American Express millions of dollars annually. For expansion, the U.S. based American Express established relationships with banks in Europe, which lead to an American Express office in Europe. The Parisian office opened in 1895 followed by an opening in London in 1896. By 1910, AmEx had invaded Europe, by expanding the company to Southampton, Berlin, Bremen, Liverpool, Hamburg, Copenhagen, Naples, Antwerp, Rotterdam, and Genoa.
American Express and World War I
Creating these offices in Europe turned out to be really helpful during World Ward I. The European banks stopped pay against any foreign letters of credit. About 150,000 American tourists were trapped in Europe, unable to access any funds. So, the U.S. based American Express allowed these tourists to cash all of their travelers cheques and paid all money orders in full.
In 1915, the U.S. based American Express officially entered the travel business. For the next few decades, AmEx focused on traveling, which was funded by their travelers cheques and money order revenue.
American Express Credit Cards & Charge Cards
Now, the U.S. based American Express offers personal charge cards, or credit cards, in which customers can use a card for purchases and be billed for the expenses later on. The company makes its money by charging fees and interest on the payments that each customer makes. AmEx also provides a traveling service, in which customers can book flights, hotel rooms, and etc. For small businesses, the U.S. based American Express offers credit cards that provide discounts for business purchases for annual rates. And, AmEx carries corporate credit cards that provide similar services to the small business card, but on a larger scale.
Other American Express Services
In addition to the traveling service and credit cards, AmEx also publishes the Travel + Leisure, Food & Wine, Executive Travel, and Departure magazines.
For over 150 years, the long running U.S. based American Express company has provided customers with services that are needed, like shipping and deliveries, traveling services, and credit services. The services of the U.S. based American Express continue to grow and that is what makes it one the world’s largest financial service providers.