AXP's Unique Business Model: A Closed-Loop System

American Express ($AXP) is one of four major card networks in the US, alongside Visa ($V), Mastercard ($MA), and Discover ($DFS). The company issues credit and charge cards, operates a global payments network, and provides travel and expense management services to individuals and businesses.

American Express' business model is unique in that it acts as both the network and card issuer, known as a 'closed-loop' system. This means they typically handle transaction processing, extend credit directly to cardholders, and manage relationships with merchants, rather than relying on third-party banks.