Amex Outperforms PayPal in Recession-Resistant Business Model

American Express has consistently outperformed PayPal in recent years, and its strong financials make it more resilient to economic downturns.

The company's business model is naturally resistant to recessionary pressures due to its focus on affluent customers with higher credit scores, providing it with downside protection during a recession.

In contrast, PayPal's revenue growth has been slowing, and its take rate has declined as the company faces increased competition. Its reliance on lower-margin unbranded payment services and Venmo peer-to-peer payments makes it vulnerable to economic downturns.