American Express recently reported earnings of $1.15, beating estimates by $0.02 on revenue of $7.9 billion. An analyst at Nomura securities set a $73 target price for American Express, citing lower operating expenses and provisions as reasons for reiterating a “buy” call.
Visa and MasterCard thought of charging a digital wallet fee, but Visa denied this would happen any time soon.
ConclusionThe rapid rise and fall in the price of Bitcoins drew attention to the need for online currencies. Its threat to card companies is minimal at this time. Bitcoin’s operations are too small to handle the massive exchange volumes required to grow. This does not mean Bitcoin will stop developing its systems. In the meantime, card companies have plenty of time to develop and improve virtual exchange services to discourage users from migrating to another service.
Written by Chris Lau