Better Payments Stock for the Long Haul: American Express or Visa?

American Express and Visa represent different investment approaches in the payments industry. American Express targets wealthy customers with a closed-loop model, offering resilience but limited growth potential. Visa operates as a middleman processor serving all customer segments, positioning it for stronger long-term growth as the shift from cash to cards continues. While American Express trades at a cheaper valuation (20x P/E vs. Visa's 28x), Visa's P/E is below its historical average, making it more attractive for growth-focused investors.