Fri. Dec 13th, 2024

American Express and Discover boast strong Q4 customer acquisition, but spending growth slows<!-- wp:html --><p><strong>The news: American Express </strong>and <strong>Discover</strong> released Q4 earnings.</p> <p><strong>Amex's total network volume increased 16%</strong> year over year (YoY) in Q4, compared with 30% YoY in Q4 2021, <a href="https://s26.q4cdn.com/747928648/files/doc_financials/2022/q4/Q4-2022-Earnings-Presentation.pdf" target="_blank" rel="noopener">per</a> its earnings presentation.<strong>Discover's total network volume grew 6% </strong>YoY, down from 21% a year ago, <a href="https://s23.q4cdn.com/669804705/files/doc_financials/2022/q4/4Q22-Earnings-Presentation.pdf" target="_blank" rel="noopener">per</a> its earnings presentation.</p> <p><strong>How we got here: </strong>Both card networks likely benefited from strong travel spending and holiday shopping in Q4.</p> <p>Domestic flights increased 84% YoY in Q4, <a href="https://www.emburse.com/learn/blog/spendsmart-travel-trends-q4-2022" target="_blank" rel="noopener">according to</a> Emburse data. And <strong>international flights surged a whopping 998% YoY</strong> as consumers released pent-up travel demand and countries relaxed COVID-19 travel restrictions.<strong>Holiday retail sales grew 7%</strong> YoY in 2022 and hit $1.297 trillion, <a href="https://forecasts-na1.emarketer.com/616de792200dbd09d85b192a/5851918a0626310a2c186aba" target="_blank" rel="noopener">per</a> Intelligence forecasts.</p> <div class="read-original">Read the original article on <a href="https://www.businessinsider.com/american-express-discover-q4-earnings-2023-1">Business Insider</a></div><!-- /wp:html -->

The news: American Express and Discover released Q4 earnings.

Amex’s total network volume increased 16% year over year (YoY) in Q4, compared with 30% YoY in Q4 2021, per its earnings presentation.Discover’s total network volume grew 6% YoY, down from 21% a year ago, per its earnings presentation.

How we got here: Both card networks likely benefited from strong travel spending and holiday shopping in Q4.

Domestic flights increased 84% YoY in Q4, according to Emburse data. And international flights surged a whopping 998% YoY as consumers released pent-up travel demand and countries relaxed COVID-19 travel restrictions.Holiday retail sales grew 7% YoY in 2022 and hit $1.297 trillion, per Intelligence forecasts.

Read the original article on Business Insider

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