Yahoo Finance AmEx (AXP) Brings Tap to Pay on TTC, Boosts Canada Foothold
American Express Company’s AXP subsidiary American Express Canada recently introduced the facility of tap to pay across the network of the public transit services provider, Toronto Transit Commission (TTC).
A commuter travelling on TTC trains, streetcars and buses merely needs to tap their American Express debit or credit card on eligible PRESTO devices, which assures to provide convenient adult fare payments for riders. The card credentials can also be saved on a mobile wallet or smart watch, which can act as contactless fare payment device on PRESTO devices.
Cardmembers commuting across TTC can also use American Express card to buy tickets or charge PRESTO cards across vending machines or at the online app of PRESTO. Therefore, the ulterior motive of the recent launch remains to extend increased choice, convenience and flexibility with regard to transit payments and finally pave the way for a hassle-free commuting journey across the TTC.
Meanwhile, Cardmembers can earn additional rewards by utilizing the newly launched facility. Also, it reflects American Express’ sincere efforts to expand its network and address the everyday spending needs of its Cardmembers.
American Express often resorts to extending the widespread benefits of digital payment solutions to its Cardmembers and such an endeavor seems to be aptly timed amid the ongoing wave of digitization inflicted across the globe. Such beneficial offerings bear testament to AXP’s efforts to incorporate new options or upgrade existing ones within its card offerings.
With the card-issuing business remaining an important source of revenues for American Express, the latest initiative is expected to contribute to its top-line growth. Revenues of AXP are anticipated to grow in the range of 15-17% in 2023 and witness more than 10% improvement on an annual basis in the long term.
American Express seems to occupy a strong foothold across the transit system of Canada and an enhanced digital suite, built through constant tie-ups and significant investments, is likely to have helped it in solidifying nationwide presence. AXP remains steadfast in infusing great digitization within the transit system of Canada.
As a testament to the same, American Express teamed up with Metrolinx last year to bring the tap to pay facility for its Cardmembers across GO Transit and UP Express. In addition to this, its Cardmembers can also enjoy the hassle-free payment facility across several public transit agencies of Canada, namely Brampton Transit, Burlington Transit, Durham Region Transit, Hamilton Street Railway, MiWay, Oakville Transit and York Region Transit. Since 2019, the lucrative facility can be availed across the public transit system of Vancouver, TransLink.
Shares of American Express have gained 8.8% year to date, compared with the industry’s 5.5% growth. AXP currently carries a Zacks Rank #3 (Hold).
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Stocks to Consider
Some better-ranked stocks in the Finance space are Medallion Financial Corp. MFIN, BlackRock Capital Investment Corporation BKCC and Invesco Mortgage Capital Inc. IVR. While Medallion Financial sports a Zacks Rank #1 (Strong Buy), BlackRock Capital and Invesco Mortgage carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The bottom line of Medallion Financial outpaced estimates in each of the last four quarters, the average surprise being 86.02%. The Zacks Consensus Estimate for MFIN’s 2023 earnings suggests an improvement of 19.7% from the year-ago reported figure. The same for revenues suggests growth of 13.7% from the year-ago reported number. The consensus mark for MFIN’s 2023 earnings has moved 24.4% north in the past 30 days.
BlackRock Capital’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 12.88%. The Zacks Consensus Estimate for BKCC’s 2023 earnings suggests an improvement of 20% from the year-ago reported figure. The same for revenues suggests growth of 37.8% from the year-ago reported number. The consensus mark for BKCC’s 2023 earnings has moved 6.7% north in the past 30 days.
The bottom line of Invesco Mortgage outpaced estimates in each of the last four quarters, the average surprise being 54.24%. The Zacks Consensus Estimate for IVR’s 2023 earnings suggests an improvement of 1.1% from the year-ago reported figure. The consensus mark for IVR’s 2023 earnings has moved 18.4% north in the past 30 days.
The Medallion Financial stock has gained 21.3% year to date. However, shares of BlackRock Capital and Invesco Mortgage have lost 4.1% and 16.5%, respectively, in the same time frame.
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American Express Company (AXP) : Free Stock Analysis Report
INVESCO MORTGAGE CAPITAL INC (IVR) : Free Stock Analysis Report
BlackRock Capital Investment Corporation (BKCC) : Free Stock Analysis Report
Medallion Financial Corp. (MFIN) : Free Stock Analysis Report
