During American Express’ Q4 2021 earnings call Tuesday, CFO Jeff Campbell made clear that a crypto-linked card isn’t in the near future.
An analyst on the call asked about the global giant’s tech stack and if blockchain and crypto are on the company’s radar as potential disruptors to payment rails.
“We watch cryptocurrencies … we think about the spectrum of digital currencies,” Campbell said. “We think about crypto … stable coins … [and] Central Bank digital currency. At this particular point in time, we view cryptocurrency more as an asset class. I mean, you’ve just seen Bitcoin go from $68,000 a coin to $34,000 a coin.” He continued, “We’ve got investments in blockchain companies to constantly look at [it] and figure out if there are use cases for us.”
When it comes to NFTs, “we’re partnering with, obviously, the NBA and Top Shot,” he said. “We’ll look at ways to get involved. But as I’ve said, we’re probably not going to offer a crypto card. We keep our eye on cryptocurrency in case it becomes more stable. But right now, I don’t see it as an immediate or medium-term threat to our business.”
American Express CEO Stephen Squeri shares Campbell’s sentiment. But he also said that crypto isn’t exactly a currency. “What I’ve said from the beginning is that cryptocurrencies are really an asset class like gold or like silver,” Squeri told Yahoo Finance. “Look at Bitcoin—which is a good bellwether—it’s down 50% in two months. How do you call it a currency?”
Yes, Bitcoin has taken a plunge lately. Cryptocurrencies are down $1.4 trillion since November, Fortune reported. And it’s no secret that most CFOs haven’t warmed up to crypto due to its volatility and complexities. It’s “a hard thing” to use crypto in the payment space, Campbell said on the call.
In regards to Q4, American Express earned net income of $1.7 billion, or $2.18 per share, compared with net income of $1.4 billion, or $1.76 per share, a year ago. In the quarter, customers spent $368.1 billion on their cards in comparison to $285.9 billion spent in 2020.
However, the company’s total expenses were $946 million, up 15% from $823 million a year ago, according to the report. This reflects higher marketing investments and operating expenses, primarily driven by increased compensation, the company said. In the war for talent, compensation costs also rose for big banks like Goldman Sachs and Bank of America.
Campbell believes the investment American Express has made in talent is worth it. “Our experience through this period has reinforced our conviction that investing strategically in our customers brand and talent is absolutely critical driving high levels of growth,” he said on the call. “We’ve seen that play out in the results we delivered throughout 2021.”
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