American Express runs a closed-loop payments network: it issues the cards, processes the transactions and maintains the merchant relationships, capturing the full economics that Visa and Mastercard split with banks. The model targets affluent consumers and businesses willing to pay annual fees for premium rewards, so revenue leans on spending volume and fees more than lending. Younger cardholders have become the fastest-growing cohort. Founded in 1850 as an express freight company, Amex evolved into one of the most valuable brands in finance.