The Founding of American Express
American Express (Amex) was founded on March 18, 1850, in Buffalo, New York. Its creation was the result of a merger between three successful express transport businesses: Wells & Company (founded by Henry Wells), Livingston, Fargo & Company (founded by William G. Fargo), and Butterfield, Wasson & Company (founded by John Butterfield). The United States in 1850 was undergoing rapid growth and expansion westward, and existing services like the US Postal Service were limited—they delivered letters but not large parcels or valuable freight reliably. There was a pressing need for secure and dependable delivery of money, packages, and goods across vast, often treacherous distances.
The Early Years and Development
American Express began as an express transportation company. Its core business was delivering packages, valuables, currency, gold, and other goods, often over railways and stagecoach routes from the East Coast to the Midwest. The founders’ prior experience and reputations for reliability quickly earned Amex the trust of banks and businesses, enabling it to handle not just physical goods but also financial documents and securities—work that was more profitable than delivering bulky freight.
Key Innovations and Societal Impact
American Express was an innovator from the start, constantly adapting to changing times and technologies:
- Financial Products: In 1882, Amex launched its money order business, making the transfer of funds safer and more accessible than the government’s postal money order of the time.
- Traveler’s Cheque: In 1891, Amex introduced the traveler’s cheque, revolutionizing how people carried money abroad and giving travelers worldwide security and flexibility.
- Charge Cards: In 1958, Amex began a new era by introducing its charge card, providing a convenient way to make payments globally. Later, they launched the Optima Card in 1987, their first true credit card.
By focusing on exceptional customer service, trust, and innovation, American Express became a global leader in secure payments and travel-related services. The Amex brand is synonymous with security, premium benefits, and competitive card offerings.
Impact on People and Society
American Express played a vital role in supporting economic development:
- Enabling Commerce: Its express services helped businesses grow by facilitating safe, efficient, and reliable movement of goods and money across a fast-expanding nation.
- Community Support: During the U.S. Civil War, Amex helped transport vital supplies and ballots, supporting both the economy and democracy.
- Empowering Travelers and Businesses: With products like the traveler’s cheque and later its cards, Amex empowered individuals and businesses to operate and travel on a global scale with security and confidence.
- Ongoing Philanthropy: Today, Amex supports small businesses, nonprofit leaders, and communities affected by disasters, maintaining its tradition of positive impact.
Founding Conditions and Legacy
The formation of American Express responded directly to the unique conditions of a young, rapidly expanding America: uncertain infrastructure, soaring demand for reliable freight, and the needs of a mobile, business-oriented population. Its founders—Henry Wells, William G. Fargo, and John Butterfield—were not just businessmen but visionaries who understood how trust and innovation could drive a nation’s growth.
Over the decades, by continuously reinventing itself and responding to customers’ needs, American Express has made a lasting mark on how the world moves money, travels, and does business.