American Express, Goldman Sachs Collaborate to Develop Cloud-Based Payments Solution


American Express Co. (AXP) and the Transaction Banking (TxB) unit of Goldman Sachs Group (GS) have partnered to offer a cloud-based payments solution to large corporate clients. The solution will provide data and analytics and support multiple payment options on a single integrated platform.

Shares of American Express closed 1.3% up on Wednesday before losing 0.2% in extended trade to end the day at $179.30. Meanwhile, Goldman Sachs’ shares closed 1% down but gained nearly 0.2% in extended trade.

As part of the deal, the companies will work together to develop a digital treasury solution for large corporations. The solution will provide support to Goldman Sachs TxB platform in featuring American Express’ virtual Cards. (See Insiders’ Hot Stocks on TipRanks)

The Executive Vice-President of Global Commercial Services at American Express, Dean Henry, said, “A major pain point for our large commercial card clients is managing multiple platforms and myriad time-consuming, costly and complex processes to make, track, and reconcile thousands of payment transactions every day. We are pleased to partner with Goldman Sachs to modernize these outdated legacy B2B payment processes.”

The Global Head of TxB at Goldman Sachs, Hari Moorthy, said, “We developed the Goldman Sachs TxB platform to provide our clients with a modern cash management platform that is digital, nimble, easy to use, and secure – bringing a consumer-grade user experience into the world of B2B payments.”

“We are thrilled to further this mission by working with American Express to expand our payment platform, enabling clients that are American Express Corporate Card Members to make card payments and drive efficiencies in their supplier payment experiences,” Moorthy added.

Currently, the solution is available only to a few clients, with general availability expected by early next year.

Recently, Barclays (BCS) analyst Jason Goldberg reiterated a Buy rating on Goldman Sachs and raised the price target to $483 from $437 (18.4% upside potential).

In a research note to investors, the analyst said, “The company’s Q3 earnings beat as trading followed by investment bank and consumer and wealth management exceeded expectations.”

Overall, the stock has a Strong Buy consensus rating based on 11 Buys, 1 Hold and 1 Sell. The average Goldman Sachs Group price target of $459.08 implies 12.6% upside potential. Shares have gained 101% over the past year.

According to TipRanks’ Smart Score rating system, Goldman Sachs scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.

Last week, Oppenheimer analyst Dominick Gabriele maintained a Buy rating on American Express with a price target of $194 (8% upside potential).

The analyst expects the company to report earnings per share (EPS) of $2.81 in the fourth quarter.

Overall, the stock has a Moderate Buy consensus rating based on 5 Buys, 9 Holds and 1 Sell. The average American Express price target of $178.86 implies 0.4% downside potential. Shares have gained 77.1% over the past year.

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