Tag Archives: Electronic Payment Systems

American Express lags behind as travel and entertainment fail. What awaits us for the stock in 2021. | Instant News


Text size A sign displaying the American Express logo can be seen outside a restaurant Justin Sullivan / Getty Images With the year almost over, we take a look at the 30 stocks in the Dow Jones Industrial Average, starting with the worst performing – Boeing and Walgreens Boots Alliance – and we’re making our way to the highest stock in the benchmark – Apple. Rankings may change before the close of trading 2020, but the stories behind the stocks shouldn’t. American Express (AXP), which caters to affluent individuals and small businesses, is likely looking forward to closing the books in 2020. Shares are down 5.1% on the year, marked by a sudden and steep decline air travel, hotel stays and entertaining dining. Businesses are letting people work from home, leisure travel is at an all-time low, and small businesses are struggling to survive public health shutdown mandates. The Dow Jones Industrial Average index gained 6.3% while the S&P 500 index is up 15.4% this year. American Express derives 60% of its revenue from merchant discount fees, 20% from interest on loans and 20% from card fees, says Lisa Elllis, analyst at MoffettNathanson, who initiated the action on a purchase earlier this month, with a price target of $ 155. . The company has a market capitalization of $ 95 billion. The year has started well for American Express, hitting a high of $ 138.13 before stumbling 51% to a low of $ 67 on March 18. It’s the same pattern as the other stocks – since mid-March, stocks have steadily gained ground. But the pandemic took a toll on results. First-quarter earnings per share of 41 cents are well below expected $ 1.46, with second-quarter earnings per share even lower, at 29 cents, according to FactSet. Profit for the full year is expected to be $ 3.31 per share compared to $ 7.99 last year. Sales for the year 2020 are estimated at $ 36.2 billion compared to $ 43.5 billion in 2019. Vaccines and the return to more normal activities can make American Express stock a good deal for those. who seek to join the trend of reopening. It trades at a forward multiple of 17 compared to Mastercard’s 40 and Visa’s 38, according to FactSet. Write to Liz Moyer at [email protected]



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Four travel credit card benefits you absolutely need in 2021 | Instant News



How much value did you get from your Priority Pass subscription this year? Have you used Global Entry in 2020? Of course, travel credit cards can provide luxurious perks like hotel room upgrades, airport lounge admission, elite status, and priority lane access at airports. Yet that’s where the problem lies: It’s unlikely you’ve been to an airplane lounge more than twice this year – if at all. It’s even less likely that you’ve used Global Entry membership, given that there are few countries that US citizens can travel to at this time. If you haven’t traveled much in 2020 and don’t know what 2021 will look like, then it might seem like a waste to have a fancy travel credit card. And to some extent, that’s true – many of the best benefits of travel credit cards have been made redundant in 2020. But that doesn’t mean travel credit cards as a whole are useless. In fact, some perks have become more valuable than ever as travel habits change, as do budgets. When applying for a new credit card – or just deciding which of your wallet to keep or empty – here are four travel credit card perks you absolutely need in 2021: 1. Travel Insurance Many credit cards offer insurance. travel insurance when you pay for your trip with this card, which can often save you from having to purchase a separate and expensive travel insurance policy. While your credit card travel insurance probably won’t cover reluctance to travel (maybe a sudden spike in coronavirus cases has reconsidered you to travel for the holidays), it can probably cover other coronavirus-related cancellations. Most credit cards with travel insurance will cover all or part of your trip if you or someone you are traveling with becomes ill. See also: Traveling with Fido? How to Find a Pet-Friendly Hotel Considering that many destinations require a COVID-19 test before going there anyway, a positive test would likely at least get you a refund on your now canceled trip. Rental Car Insurance If you’re one of the many travelers swapping air travel for a car trip, you may find yourself renting a car. When you rent this car, charge it to a credit card with rental car insurance as it can help pay for some or all of the costs of damage or theft. Ideally, your credit card would provide primary coverage, meaning it pays first in the event of a rental car accident, so you don’t have to bring in your own insurer. This is preferable to secondary insurance (which pays the fees and charges that your primary insurance policy doesn’t cover), as you will likely avoid having to file an initial primary insurance claim – which could otherwise result in an increase in your insurance rates 3. Flexible Cancellation Policies When Redeeming Travel Rewards Many credit cards offer significant rewards in the form of points and miles either as a signup bonus or for spending money on your card (or both. ). Just make sure your particular points or miles currency is eligible for a refund if you need to cancel your trip. For example, Southwest Airlines LUV, + 1.44% still allows passengers to cancel award flights and receive a full refund of all your points, taxes and fees. But on airlines like JetBlue JBLU, -2.53% or United, UAL, -0.26%, you may find yourself paying what’s called a mileage redeposition fee on some bookings, which are fees. to collect these points. While these fees may be waived in 2020, policies are constantly changing and evolving for 2021. Plus: American Express rolls out new Uber Eats benefits as pandemic reshapes credit card rewards don’t want to lose them just because that your trip has been canceled – so choose your currency carefully. Claiming credits for expenses around the house, like take out or streaming One of the nicer things about travel credit cards is the perks you get that you might not otherwise pay but which enhance your experiences: lounge access, airport restaurant credits or boarding upgrade. Even if you’re not traveling, the same logic applies to non-travel benefits. Especially now, issuers are launching perks designed to take shelter in place. As an example, you’ll find credits for Variis by Equinox, a gym-designed app that brings Equinox workouts to your living room. Plus, more and more cards offer take-out credits or delivery discounts, so you’ve got a good excuse to order from that new pizzeria you’ve been dreaming of. And keep an eye out for special offers on streaming services, so you can finally gorge yourself on this new hit show everyone is talking about. You might not be the kind of person who would pay for a Disney + DIS, + 0.25% or Peloton PTON, + 2.09% membership on your own, but when it’s free or discounted thanks to your card. credit cards, you might find that Baby Yoda and yoga can make your social life a little better. Premium travel credit cards aren’t totally dead – but you need to make sure that the card you have has benefits. that you will actually use. Whether it’s travel-specific benefits that allow for greater cancellation flexibility (which is more important than ever in today’s world of COVID travel), or the benefits have little to do with travel, the right credit card can help you at the same time. life a little more chic and a little less of a headache. Read more: Three things to know about donating points and miles to charities In 2021, don’t be fooled by perks like the Southwest Companion Pass or Marriott MAR, -0.11% Bonvoy Elite Status. Travel insurance and flexible cancellation policies are less sexy, but in a year where you don’t travel the way you did before, they can be the most valuable credit card perks of all. More from NerdWallet Sally French is a writer at NerdWallet. Email: [email protected] Twitter: @SAFmedia. .



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German Prosecutors Investigate Ernst & Young’s Role in Wirecard Collapse | Instant News


German prosecutors are examining Ernst & Young’s role in the humiliated collapse of payments operator Wirecard AG, increasing pressure on auditing firms.

Munich prosecutors said they were evaluating a report by the state’s accounting watchdog about the company’s collapse this summer. The supervisor, known as Apas, conducted an investigation into the work of the audit firm’s local affiliate, EY GmbH, after Wirecard admitted that more than $ 2 billion in cash it said was held in bank accounts in his name did not exist.

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Visa, Mastercard and American Express shares revive hope of travel recovery amid bullish vaccine news | Instant News


American Express is the biggest winner on the Dow Jones Industrial Average during Monday’s session. Getty Images’ upbeat vaccine news Pfizer Inc. and BioNTech SE gives a boost to many stockpiles of payments on Monday in hopes that a vaccine can revive the global travel landscape and lead to a broader spending recovery of consumption. Shares of Visa Inc. V, + 7.16%, are up 9% in Monday trading, while shares of Mastercard Inc. MA, + 9.85%, are up more than 11% after Pfizer PFE, + 7.69% and BioNTech BNTX, + 13.91% depending on whether their vaccine candidate had shown 90% effectiveness in preventing COVID-19, a much higher threshold than initially expected. “With a vaccine showing good progress, we believe that [small- and medium-sized business]”Sensitive stocks could rebound,” wrote Baird analyst David Koning in a note to clients. Visa and Mastercard generate around 20% to 25% of their income from cross-border travel, he wrote, and that category may have fallen from 70% to 75% in recent months according to his estimate. Mastercard noted on its last conference call that worldwide travel was largely blocked, with the exception of some travel between countries in the European Union. These intra-European transactions are “less productive” than other cross-border transactions, said CFO Sachin Mehra. This means that Mastercard keeps more of the transaction when processing cross-border payments between customers and merchants who are not both from the EU. Additionally, credit spending has been depressed as consumers have shown a preference for debit cards, seen as a more conservative payment instrument. “Travel, on the whole, is more credit-oriented,” Mehra said during Mastercard’s earnings call in late October, so the company expects to see a rebound in this part of. activity once international travel rebounds. Read: Visa and Mastercard have a lot in common, but COVID-19 puts key difference in target American Express Co. AXP shares, + 21.38%, lead the Dow Jones industrial average higher on Monday, in 21% increase in the session. Travel and entertainment is the “bread and butter” of the business, according to Susquehanna analyst James Friedman, who wrote that these areas accounted for 26% to 30% of the company’s booked business in the quarters leading up to the pandemic, “with the airlines alone at 7% to 9%. American Express also offers business travel services. In general, business travel has been slow to rebound even as domestic personal travel resumes. “If you look at our corporate card business, obviously there’s… hardly anyone traveling in any way at this point,” CEO Stephen Squeri said on American Express earnings call. in October. The hope is that a vaccine could help make the way people work more normal. See more: Financial stocks soar, led by American Express after bullish news on potential COVID-19 vaccine As big names in credit cards surge in Monday’s session, names of payments from the new school whose shares have recovered since the start of the pandemic have fallen. These include PayPal Holdings Inc. PYPL, -8.88%, which saw record spending on its platform as the COVID-19 crisis pushed more people to buy things online and brought more consumers, especially older generations, into the digital fray. PayPal shares are down about 6% in the session. A sign of how much Square Inc.’s SQ narrative, -7.06% has changed since the start of the pandemic, its stock is also trading lower on Monday, at around 5%. Square is known to provide payment processing services to small businesses, and its inventory plummeted at the start of the crisis over concerns that local merchants would be particularly pressed by restrictions on business activity. A vaccine should help these small businesses, but Square’s stock appears to be taking a hiatus after what has turned out to be a 150% rally in the past six months, once investors saw more value in d ‘other parts of the company’s business, such as the Mobile Wallet Cash App and online stores for merchants. Other names that could benefit from a rebound for small businesses include Fiserv Inc. FISV processors, + 5.85%, Fidelity National Information Services Inc. FIS, + 6.42%, and Global Payments Inc. GPN, + 11.37%, according to Koning de Baird. . He calculates that around 10% to 15% of Fiserv and FIS revenue is driven by physical small and medium businesses, as well as maybe 25% to 30% of Global Payments revenue. The three should see “very easy” comparisons in the second quarter of 2021, he wrote. Fiserv shares are up 8.6% as of noon Monday, while FIS shares are up 8.5% and Global Payments shares are 12.7%. .



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