American Express has introduced significant updates to its flagship credit card as competition intensifies in the premium card market. The revised Platinum card, available in both consumer and business versions, now comes with an annual fee of $895, representing a nearly 29% increase from the current fee of $695. In exchange for this higher fee, cardholders can access an impressive $3,500 in annual benefits, more than double the previous offering, primarily through credits that offset various purchases made with the card.
Among the updated perks are credits for Uber, Lululemon, Oura, and the restaurant reservation platform Resy, alongside enhanced benefits for hotel stays and streaming services. Business cardholders will also enjoy the same $3,500 in annual benefits, which include new hotel credits and offsets for purchases at Dell Technologies and Adobe. Howard Grosfield, president for U.S. consumer services at American Express, emphasized that these enhancements are in addition to existing benefits, none of which have been reduced.
This move reflects a broader trend among credit card issuers catering to affluent consumers in the U.S. Recently, financial giants like JPMorgan Chase and Citigroup have unveiled their own updated or new premium credit cards, featuring similar high-value benefits aimed at high spenders. Notably, both American Express and JPMorgan made their announcements in quick succession, indicating an escalating competition in the premium card market.
Data from Moody’s Analytics reveals that consumers within the top 10% income bracket accounted for approximately half of all spending in the second quarter—an all-time high. This surge among wealthy Americans underscores the urgency for credit card issuers to attract and retain this lucrative customer base.
Despite the appealing updates, the rising annual fee has prompted some cardholders to downgrade to less expensive options or explore alternatives from competitors like Capital One and Citigroup. Concerns have emerged regarding the so-called “coupon book” approach, where customers feel pressured to meticulously use their cards to take full advantage of the benefits. While some perks, such as a $400 dining credit with Resy and a $300 credit with Lululemon, require online enrollment, American Express is introducing a new app feature designed to simplify the process for Platinum users.
Grosfield noted that a significant effort has been dedicated to making the experience as seamless as possible for card members, ensuring they can easily understand, access, and utilize the extensive benefits available to them. Starting January 2, existing customers holding the consumer Platinum card will face the new annual fee upon renewal, marking a pivotal moment in American Express’s efforts to redefine its card offerings in a crowded marketplace.
