The total spending on American Express corporate cards rose to $119.9billion in the second quarter from $104billion during the prior quarter. This is 45 percent more than the Covid-19-ravaged quarter 2020, according to the payments giant.
Amex’s Global Commercial Services Division saw strong quarterly growth. Its average cardmember spending reached $8,180 during the second quarter. This is an increase of over $1,000 and 45 percent above the previous quarter. The number of active cards increased 1 percent to 14.8million,
T&E spending accounted for 18% of all Amex card volume in the second quarter. This is an increase of 14 percent and 11% over the two previous quarters, and close to the pre-Covid average of 25 percent spending volume.
The improvement in airline-related spending was also evident. It now accounts for 3 percent of the total second-quarter Amex volume globally, up from 2 percent in Q1 but statistically zero percent during the second quarter 2020 when virtually all international travel was halted by the Covid pandemic.
American Express CEO Steve Squeri spoke on Friday at the earnings conference. He cited the strong spending from small and medium-sized enterprises as an especially buoying factor for its GCS business unit. SME volumes in the second quarter were higher than pre-pandemic levels.
Squeri stated that “Global SME spend, which accounts for the bulk of our commercially billed business,” was the strongest across all customer types. It grew 6 percent over the previous quarter, compared to 2019, and he noted.
The Amex Chairman said that the quarter’s figures were “all in all, it was a very good story about spending volumes.”
Publited Fri, 23 July 2021 at 22:48.24 (+0000).