American Express plans ‘largest investment ever’ in platinum credit card

[NEW YORK] American Express (Amex) teased updates coming later this year to its travel-focused Platinum credit cards, announcing what it called its “largest investment ever” in a credit card refresh.

“We are going to take these cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel,” Howard Grosfield, Amex’s group president for US consumer services, said on Monday (Jun 16).

Amex raised its Platinum card annual fee to US$695 in July 2021, when it also added US$200 in annual hotel credits. Since then, the New York-based company has faced intensifying competition for premium credit card customers, including from JPMorgan’s Sapphire Reserve card and Capital One Financial’s Venture X Rewards card.

The Amex update will apply to both the US consumer and business Platinum cards, the company said. It did not provide more specifics on what changes are coming.

Card upgrades are critical for new-card acquisition and fees to fuel Amex’s revenue growth targets, Bloomberg Intelligence analyst Ben Elliott wrote in a note to clients.

“Consumers’ appetite for ever-higher annual fees and complex, incentive-driven rewards structures could be tested if demand slows, but the formula has driven growth consistently for decades,” Elliott said.

Access to Amex’s global lounges is one of the benefits linked to the Platinum card. A new Centurion lounge will be opening at Tokyo’s Haneda Airport in the next year, Amex said, in addition to already-announced plans for new ones in Salt Lake City and Newark, New Jersey. BLOOMBERG