In an engaging and detailed interview, Mohammed Badi, President of Global Network Services at American Express, alongside Briana Wilsey, Vice President and General Manager of Global Network Services EMEA at American Express, shared their strategic insights and plans for American Express, particularly focusing on their expansion in Africa with a special emphasis on Nigeria.
- American Express is focusing on expanding its presence in Africa, particularly in Nigeria
- The company plans to increase its presence in Africa, with a current operation in 30 countries and a goal to expand to 42 countries in the sub-Saharan region
- American Express has a historical footprint in Africa dating back to the 1890s, with a strategic focus on partnerships and collaborations
A legacy of innovation and choice
American Express, established in 1850, has grown from a trusted express freight forwarding delivery company to a prominent figure in the global financial landscape. Mohammed Badi, in his introduction, emphasized the company’s diverse role: "As a company, we are an issuer, a network, and an acquirer." He detailed how the company's comprehensive model operates globally and its historical footprint in Africa since the 1890s, starting with traveler's checks through a partnership with the Bank of Africa.
“We began our traveler’s checks business through a partnership with the Bank of Africa, providing services to our global customers when they visit the continent. Currently, we operate an integrated model in countries around the world where we are the issuer, the network, and the acquirer. This model is implemented, for instance, in the United States, the UK, and much of Europe, as well as in Australia, Japan, and other regions. Also, we operate a network business where we function as the network provider and collaborate with bank partners globally to act as issuers and acquirers for American Express. This is how we operate in sub-Saharan Africa. Nedbank, for example, is our longest-standing network partner globally, and this partnership was formed about 50 years ago. In North Africa, we also operate a Joint Venture called American Express Middle East which has a license to acquire merchants and issue Cards in the Middle East and North Africa.”
Badi continued, “We view American Express as both a network and a product of choice. Consumers, businesses, and corporations can choose to have an American Express Card. Similarly, merchants have the choice of whether or not to accept American Express. This flexibility is central to our model, and you often hear us refer to it as a ‘membership’.”
Strategic expansion in Africa
Badi was vocal about the increasing demand for American Express in Africa, driving the company to enhance its investments on the continent. “Over the past ten years, we've witnessed a demand for greater presence of American Express in Africa. In response to the concept of choice and this demand across the continent, we have been increasing our investments in Africa. Currently, we operate and accept transactions or issue cards in 30 countries within the sub-Saharan region and we aim to grow our overall presence to 42 countries. This is a huge focus for us.”
Briana Wilsey detailed their strategic entry into Nigeria: "A great starting point is our office here in Lagos, which underscores our exciting entry into Nigeria. We have a small but mighty team here, and they are working with our existing partners like Access Bank, Unified Payments and Interswitch. Our growth strategy primarily revolves around forging continued partnerships in this market.
We are keen on engaging with more banks who express interest in working with us, as we believe in bringing more choice to the market. This includes offering different types of card products tailored to serve various customer segments, including small businesses.
We are trying to create products and experiences that we know our customers love based on what we've done in other places and bring that expertise and innovation to Nigeria."
Strategic partnership with O3 Capital to empower Nigerians
Briana Wilsey also detailed the exciting new partnership with O3 Capital, marking a significant step in American Express's expansion in Nigeria. "We're excited about our partnership with O3 Capital. They're the first tech company to issue our cards here in Nigeria," she explained. This collaboration will see the launch of four new cards tailored to both small business needs and consumer preferences.
Wilsey emphasized the importance of this initiative, especially considering the substantial contribution of small and medium enterprises (SMEs) to the local economy. "Nearly half of the GDP of Nigeria is driven by small and medium enterprises, so there is a strong need for this type of product."
This partnership is viewed as the next step of a transformative journey for American Express in Nigeria. "We'll introduce these products to the market, gather feedback, and then innovate further based on that feedback," Wilsey added.
Mohammed Badi also noted the special focus American Express places on supporting segments like female-owned small businesses and underrepresented groups, enhancing their commitment to diversity and inclusion in business.
The concept of network vibrancy and local engagement
Discussing how American Express plans to deepen its engagement with local businesses and consumers, Badi introduced the concept of 'network vibrancy,' emphasizing the aim to see more American Express Cards in people's wallets and their use by merchants for transactions.
"First of all, in any country or geography we look at, we have this concept of network vibrancy. Internally, we use the terms scale and relevance because our objective is to see more American Express cards in people's wallets used by merchants for transactions."
Badi also spoke about the importance of treating every American Express card the same globally, whether it's issued in the UK, Japan, or Nigeria, “In Nigeria specifically, we may issue cards locally to serve the needs of consumers, businesses, and corporations based in the country. This supports the local economy and ensures convenience for our global card members when they visit.”
Diverse and tailored products for the Nigerian Market
Wilsey elaborated on the tailored products for the Nigerian market, including the launch of the American Express Platinum and Gold Cards by Access Bank. "These Cards provide the convenience of spending in both naira and dollars, making them dual currency cards. They come with benefits tied to the American Express network, such as global lounge access. Whether you're travelling locally or abroad, you can access airport lounges with your Platinum Card." she said.
She also highlighted the customization of products to local tastes and needs, which is a strategic move to enhance user experience and acceptance. “Access Bank also brings local benefits, experiences and flavours to the product. So, a Platinum Card in Nigeria isn't like a Platinum Card in the UK or the US. We work with our partners to ensure the product is customised to the market that it's in.”
“The Platinum and Gold Cards come with Membership Rewards points, which offer a wide range of redemption options, making it a highly flexible currency. While some prefer cash-back rewards, others opt for co-branded cards with airlines or hotel chains. We're committed to assisting our partners in generating fresh and inventive ideas to meet the evolving needs of our customers.”
Enhanced benefits for global travelers and shoppers
Mohammed Badi spoke about the rich array of benefits of their Platinum Card, designed to cater to the sophisticated needs of global travelers and avid shoppers. "Our Platinum Card offers a variety of assets and benefits categorized into three main buckets: the travel bucket, the retail bucket, and the experience bucket," Badi explained.
Detailing the travel benefits, Badi highlighted the exclusive access to American Express-owned lounges, which are situated in countless cities across the globe. "We have lounges around the world, ensuring that our Platinum Card offers seamless access to these facilities, much like other Platinum cards worldwide."
In addition to travel perks, the partnership with Booking.com enriches the experience for cardholders. "They offer exclusive discounts for American Express card members, including those with the Platinum Card," Badi noted. Very soon Card Members will be able to access these discounts through a streamlined entry into the Booking.com portal via American Express and Access Bank channels.
The retail benefits also stand out, with American Express establishing robust relationships with merchants globally. "We have many examples in retail where our partnerships come into play," Badi added, underscoring the comprehensive benefits that make the American Express Platinum Card a leading choice for consumers who seek luxury, convenience, and a wide array of benefits across travel, shopping, and experiential domains.
Future Innovations and Customer Experiences
Looking forward, Wilsey expressed enthusiasm about introducing new products, like a small business card specifically designed for the Nigerian market and expanding partnerships with more banks and fintech companies.
By focusing on strategic partnerships, tailored products, and local engagement, American Express is poised to significantly impact the financial services landscape in Nigeria and beyond. The detailed insights from Badi and Wilsey underscore American Express's commitment to innovation, customer-centric solutions, and a deep understanding of the diverse financial needs across Africa. This approach not only aligns with their long-standing tradition of innovation but also positions them as a pivotal player in Africa's burgeoning financial sector.
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