Better Buy: PayPal Holdings, Inc. vs. American Express

PayPal (NASDAQ: PYPL) and American Express (NYSE: AXP) both make money by processing payments, but the two companies have very different business models. PayPal's platform facilitates online payments across PCs, mobile devices, and various point-of-sale terminals. American Express is the world's largest credit card issuer by purchase volume, and generally serves higher net worth individuals.

PayPal surged nearly 70% this year, while American Express rallied more than 20%. Does that difference indicate that internet-based payment networks are now overtaking traditional card-based ones? Or is American Express a better value play with more upside potential?

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Source: Fool.com