Is American Express Company (NYSE:AXP) under threat as the many companies including Apple Inc. (NASDAQ:AAPL) is invading the payment space? American Express Chairman and CEO, Ken Chenault doesn’t think so. Chenault talked on CNBC about Apple Pay and increasing competition in the payment business.
Apple Inc. (NASDAQ:AAPL) has got companies like American Express Company (NYSE:AXP), Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA) onboard for its Apple Pay product. Apple is currently utilizing the services of these companies to deliver the payments. When Apple captures a considerable amount of market, they can turn around to these companies and say that they will use their own network or services for payments. That might be the biggest drawback that these service providers face. But Chenault thinks otherwise.
“The reality is that, you can take a defensive mentality, […] because I am not sure what is going to happen. We have a lot of confidence in the unique capabilities what we have,” Chenault said.
Chenault added that it is definitely important to understand what American Express Company (NYSE:AXP) is doing with Apple Inc. (NASDAQ:AAPL) in Apple Pay. He mentioned that it is a very smart move from Apple to tie the payment business very close to its core business (phone business).
“The reality is does Apple want to be involved in credit and all that goes with that. I don’t think so. I think they are clear about what their core business is and what their core mission is. We compete with all types of payment providers. Let us be very clear. I have banks that issue AMEX branded cards that also issue Visa, Mastercards and I compete with them,” Chenault said.
He said that American Express Company (NYSE:AXP) is ready to partner to provide different types of customers, despite the threat of competition looming around. He said that the company is ready to innovate. He mentioned that he is not scared of competition.
Be it Apple Pay or American Express Cards, you might want to know the places to use them. Here is the list of 12 biggest shopping centers in the world.
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