Is American Express Larger than Mastercard?

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The age-old question of whether American Express (Amex) is larger than Mastercard has been a topic of much debate. In 2020, it was clear that Mastercard had surpassed American Express in terms of market capitalization and the number of issued cards, but this wasn't always the case. Let's delve deeper into the specifics and explore other factors that contribute to the 'size' of these card networks.

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Market Capitalization and Card Volume

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Market capitalization is a key indicator of a company's size. As of 2020, Mastercard had a larger market capitalization compared to American Express. This metric is driven by various factors including brand strength, competitive positioning, and overall financial health. Another crucial measure is the number of issued cards. Again, as of 2020, Mastercard led in this aspect, indicating a broader customer base and stronger market penetration.

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Demographic Breakdown: Credit Card Usage in the USA

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Understanding the number of people carrying each type of credit card provides further insight into the attractiveness and market share of these networks.

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American Express vs. Mastercard

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In 2018, the figures were as follows:

" "" " Visa Credit Cards: 49.26% of American adults had a Visa credit card in 2018. This is the leading credit card brand in the US." " Store Credit Cards: 44.16% of American adults had a store credit card in 2018. This category includes cards issued by big retailers like Best Buy or Walmart." " Mastercard Credit Cards: 38.95% of American adults had a Mastercard in 2018. This is the second most popular choice after Visa." " Discover Credit Cards: 17.52% of American adults had a Discover credit card in 2018. This represents a significant third place." " American Express Credit Cards: 15.00% of American adults had an American Express credit card in 2018. This is the least popular choice among the major brands." "" "

Differences in Card Usage and Features

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While the figures may peg Mastercard and Visa as the most popular among US consumers, American Express offers a unique set of benefits that attract a specific segment of the population. For instance, Amex Cards often come with excellent rewards programs and high-end perks that not all consumers prefer. Mastercard, on the other hand, has a broader appeal and is used in a wider variety of transaction scenarios, including international travel, retail, and dining.

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Mastercard's global reach and acceptance in both online and offline transactions make it a preferred choice for merchants and businesses. Amex, however, focuses more on niche markets and a smaller but more engaged customer base who value the premium benefits and perks.

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Conclusion

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While American Express and Mastercard both hold significant shares in the credit card market, the 'larger' of the two can be defined differently based on the metric and the context. Mastercard, with its higher market capitalization and widespread usage, is undoubtedly a larger network in terms of volume and financial strength. However, American Express still commands a loyal customer base and unique advantages that make it an attractive choice for many consumers and businesses.

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For SEO and any digital marketing strategy, understanding these key factors is crucial to effectively targeting the right audience and optimizing content and offerings to suit their preferences.