Better Payments Stock for the Long Haul: American Express or Visa?
American Express is focused on a select customer base, while Visa aims to serve everyone, acting as a middleman.
Better Payments Stock for the Long Haul: American Express or Visa?
Overview
If you are looking at American Express (NYSE: AXP) and comparing it to Visa (NYSE: V), you are essentially comparing the high end to the mass market. Both companies have appeal as businesses over the long haul, depending on your personal investment approach. However, one is likely to have more opportunities to grow than the other. Here's what you need to consider as you decide between American Express and Visa.
Visa is a finance industry middleman. It charges a small, per-transaction fee to connect buyers and sellers. Other companies actually issue the credit cards and debit cards that carry the Visa logo. The issuer of the card assumes the financial risk associated with financing transactions, since a credit card is effectively a revolving line of credit.
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Originally published at www.fool.com.
