Despite substantial increases in annual fees—sometimes amounting to several hundred dollars—consumer enthusiasm for prestigious credit cards remains remarkably resilient. Rather than discouraging potential applicants, these steeper costs appear to have heightened the allure of exclusivity and the perception of superior benefits that accompany such elite financial products. American Express executives revealed that the early response to the company’s newly redesigned Platinum Card has significantly surpassed their internal projections, a topic that dominated much of Friday’s third-quarter earnings call.
During that call, CEO Stephen Squeri emphasized that new Platinum account openings are occurring at roughly double the rate recorded before the card’s recent overhaul. He went on to describe this momentum as the strongest initial performance the company has ever witnessed for a U.S. Platinum Card relaunch—a noteworthy statement, given that this is the third major refresh of the product within the last ten years. This exceptional surge in demand underscores just how enduring the appeal of Amex’s luxury brand remains among consumers who value prestige and premium experiences.
The updated Platinum Card, which debuted in September, now carries an annual fee of $895. Squeri noted that, despite the steep price point, Amex continues to enjoy consistent loyalty from existing customers. Retention levels have remained stable even after the refresh, suggesting that cardholders perceive tangible value in the card’s extensive suite of perks. He also clarified that the $200 increase in annual fees will not affect current members immediately—the change will be phased in over several months, allowing a smoother transition for longstanding users.
The broader competitive landscape in the high-end credit card market has also intensified. Rival issuers such as JPMorgan Chase and Citigroup are escalating their efforts to capture the same affluent consumer segment. Chase has increased the annual fee on its well-known Sapphire Reserve card, while Citi introduced the new Strata Elite card earlier this summer. Predictably, these moves have sparked some consumer complaints regarding ever-rising costs. Nevertheless, evidence suggests that demand for top-tier cards remains exceptionally strong. JPMorgan Chase CFO Jeremy Barnum remarked that, despite the Sapphire Reserve’s fee rising to $795, the bank is having no difficulty persuading customers to sign up. According to Barnum, the company is currently experiencing its best year on record for new account acquisitions across the entire Sapphire portfolio, a telling indicator of persistent interest in luxury credit products.
American Express, for its part, has noted that the revamped Platinum Card resonates with an unusually diverse demographic. Squeri explained that the benefits package, which integrates travel, lifestyle, health, and entertainment privileges, appeals to a broad cross-section of age groups—including millennials and members of Generation Z. Particularly, younger consumers have shown a strong affinity for features emphasizing wellness programs, digital entertainment credits, and elevated lifestyle experiences. This generational breadth of appeal demonstrates how the Platinum Card has evolved beyond its traditional image as an older, executive-focused product into a symbol of aspirational living embraced by rising professionals.
Younger customers have become an increasingly vital component of the Amex customer base in recent years. Data from the first quarter of the previous year revealed that millennials and Gen Z customers accounted for approximately 75 percent of all new Platinum and Gold Card accounts—a striking reversal from the company’s historical focus on older, higher-income clientele. Squeri has previously acknowledged that American Express originally approached these younger demographics with no-fee or low-fee cards. However, the company has since shifted its strategy dramatically, recognizing that many younger consumers are willing to invest more in exchange for luxury, flexibility, and a sense of exclusivity.
This shift appears to be paying off. During Friday’s call, CFO Christophe Le Caillec reported that millennial and Gen Z cardholders used their Amex cards about 25 percent more frequently than their older counterparts during the most recent quarter. Their higher transaction volume not only fuels billed business growth but also confirms the success of Amex’s repositioning as a lifestyle brand that caters to a new generation of affluent, experience-driven individuals.
For the quarter, American Express reported a total of $421 billion in billed business—the aggregate value of all cardmember transactions processed through Amex systems. Reflecting investor confidence, Amex’s stock price surged more than 7 percent by mid-afternoon on Friday. Collectively, these data points illustrate a compelling narrative: in an era of inflation and shifting consumer priorities, the appetite for luxury financial products remains robust, driven by a blend of aspirational branding, experiential rewards, and enduring trust in these long-established institutions.
Sourse: https://www.businessinsider.com/amex-platinum-card-growth-chase-sapphire-competition-2025-10
