Will Coinbase Help American Express Future-Proof Its Payments Model?

American Express Company AXP, also known as AmEx and well-known for its premium cards and loyalty programs, is making a significant move to connect with the next generation of consumers by diving into the world of crypto. In the market where younger users prioritize innovation over legacy prestige, the company is on the lookout for fresh ways to remain relevant.Through its partnership with Coinbase, AXP plans to launch Coinbase’s first credit card, the Coinbase One Card, soon, exclusively for Coinbase One members in the United States. With this, cardholders can earn rewards linked to cryptocurrency, along with exclusive benefits, offers, experiences and protections through the American Express Network. The card will be issued by the First Electronic Bank.Stablecoins have become an important link between the world of traditional finance and the crypto landscape. By exploring these digital assets, AXP can provide its cardholders with a fresh level of flexibility, speed up settlement times and make cross-border transactions more seamless.By teaming up with Coinbase, one of the leading names in crypto trading, American Express can speed up its entry into this space. Coinbase’s regulatory expertise and expanding role in payments could help AmEx more easily integrate blockchain-based solutions.Still, regulatory uncertainty surrounding stablecoins remains a significant challenge. If American Express can strike the right balance between compliance and innovation, diving into digital assets could enhance its image as a forward-thinking payments solution provider.How Are Competitors Faring?Some of AXP’s competitors in the digital assets space include Mastercard Incorporated MA and PayPal Holdings, Inc. PYPL.Mastercard is one of the competitors of AXP in the crypto arena. Mastercard has launched Crypto Credential to secure blockchain transactions. The company is also launching crypto-linked cards across various geographies. Wirex, Bit2Me and Coins.ph have also joined MA’s Crypto Credential ecosystem.PayPal is among the pioneers in the fintech space when it comes to cryptocurrency adoption. It has allowed users in some markets to buy, sell and hold cryptocurrencies on its platform. PayPal introduced its own stablecoin, PYUSD, which is designed to facilitate quick and affordable digital payments within its ecosystem.American Express’ Price Performance, Valuation & EstimatesShares of AXP have risen 8% in the year-to-date period compared with the industry’s growth of 5.2%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, American Express trades at a forward price-to-earnings ratio of 19.28X, down from the industry average of 24.92X. AXP carries a Value Score of B.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for American Express’ 2025 earnings is pegged at $15.26 per share, implying a 14.3% jump from the year-ago period.Image Source: Zacks Investment ResearchThe stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Mastercard Incorporated (MA): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks