AXP » Topics » Competition

This excerpt taken from the AXP 10-K filed Mar 6, 2006.

Competition

Our network competes with other charge and credit card networks, including, among others, VISA, MasterCard, Diners Club (which, in the United States, has been folded into the network operated by MasterCard), Discover, a business unit of Morgan Stanley (primarily in the United States), and JCB Co., Ltd. (primarily in Asia). The principal competitive factors that affect the network business include:

 

    the number of cards-in-force and amount of spending on these Cards;

 

    the quantity and quality of the establishments where the Cards can be used;

 

    the economic attractiveness to card issuers and merchant acquirers of participating in the network;

 

    the success of marketing and promotional campaigns;

 

    reputation and brand recognition;

 

    innovation in systems, technology and product offerings;

 

    the quality of customer service; and

 

    the security of Cardmember and merchant information.
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