There has always been something elitist about issuing an American Express card. First, they often come with an annual fee that can seem hefty to many Americans, and they have long been associated with travel perks that only make sense for the wealthy. Additionally, Amex was not always accepted everywhere due to transaction fees. This consumer profile resonates most with baby boomers and older generations.
But now Gen Z is clamoring to get their hands on that shiny gold plastic. Indeed, this generation, along with millennials, accounted for 75% of new consumer platinum and consumer gold accounts in 2023, says Howard Grosfield, president of US consumer services at American Express. Luck.
“Amex is becoming the calling card for a whole new generation,” Grosfield says. “Our premium products and membership model resonate with younger customers with high credit quality and high spending, meaning we maintain longer relationships throughout their lives and grow with them during their peak spending years.”
It may seem surprising that younger generations, faced with high inflation, student loans and high housing costs, would choose a card that they have to pay for. (The Amex Platinum Card comes with annual fee of $695). But millennials and Gen Z are really willing to shell out for a card that offers “lifestyle” perks that go beyond just travel points. The Platinum Card includes entertainment credits for subscriptions to platforms like Hulu and New York Times, as well as Uber cash, airport lounge access, and even shopping credit at Saks. According to Amex, the Platinum card costs $1,500 per year relative to its annual fee.
“Even 10 to 15 years ago, we thought that no-fee cards were the starting point for attracting younger customers to the franchise,” Grosfield says. “We realized that this is the wrong strategy for millennials and Gen Z. They like belonging to a brand. They love traveling and dining out, and they love the special access and experiences that our rewards cards provide.”
It also helps that more merchants accept Amex than in the past, helping the card shed its occasional reputation as fussy or elitist. While Amex has long offered more generous benefits than other cards, the downside is its relative cost to merchants. was not accepted everywhere. Rival Visa has had great success trolling Amex with its 20-year “It’s Wherever You Want to Be” ad campaign.
However, that has now changed as the number of locations around the world accepting American Express cards has more than tripled since 2017, a company spokesman said. Luck. “About 18 million stores and merchants accept Amex here in the U.S. because we maintain 99% coverage parity with other credit card networks,” Amex says. Luck.
However, the battle over commissions isn’t over yet: One major e-commerce company will stop accepting Amex this summer: eBay. The e-commerce platform will stop paying Amex in August, citing “unacceptably high fees.” (An Amex spokesperson says they are “disappointed” with the decision, which will “limit customers’ payment choices.” They add: “Our research shows that in the US, the cost of accepting American Express is comparable to what eBay pays for similar card services in others networks.)
Not everyone has an Amex.
While American Express has certainly seen a wave of new younger customers, that doesn’t mean they’re shying away from their high-income or high-end clientele. Amex customers continue to have “super-premium FICO and credit quality that outperforms their industry peers,” Grosfield says. In addition, the average income of millennial and Gen Z customers in the U.S. is about 70% higher than the average income of these customers throughout the industry, an American Express spokesperson said. Luck.
According to the company, their average customer ages 18 to 24 has a credit score of 679, while customers ages 25 to 40 have an average credit score of 686. American Express. According to the entire credit card industry, Gen Zers have an average credit score of 665. VantageScore CreditGauge.
It’s also important to recognize that the card’s annual fee isn’t affordable for everyone, and that competitors’ card fees may fluctuate as these travel and lifestyle cards become more popular. However, Gen Z is attracted to the luxury lifestyle, even if they can’t afford it.
Amex “has traditionally symbolized stability, designed for the elderly and wealthy,” says
Gloria Garcia Cisneros, Gen Z asset manager for LourdMurray. Gen Z’s interest in the card is largely driven by AmEx’s changing value proposition. They present themselves in a new light, and Gen Z doesn’t like to miss out on the latest and hottest trends.”
Generation Z also loves “good life hacks”
While Amex has long been popular among the wealthy, who accumulate points for travel like no other, Gen Zers are enjoying the card’s benefits beyond points on airfare and hotels. With a more diverse set of benefits, Gen Zers see this card as a way to get the most bang for their buck.
Gen Z “loves a good hack,” says Gabriela Serpa Royo, senior culture analyst at consumer research agency Canvas8. Luck. According to them, “credit card benefits are even better than credit because they count as free money in the brain.”
Indeed, Gen Z is more engaged with Amex benefits, including travel, dining and special events, than older generations, Grosfield says. Amex members also have access to online training on budgeting, saving, planning for retirement, owning a home and getting good credit. All of these factors provide hope for “a long path of growth from millennial and Gen Z customers,” Grosfield says.
However, the bottom line is that Gen Z is always looking for a deal. Indeed, “the growing love for credit card benefits is not unlike the explosion we’ve seen lately, and is not unrelated to the rise in popularity of buy now, pay later products,” Royo says.
“People are looking for deals because they feel like they need more, they want more, and they want to look like they have more when they have or appear to have less,” Royo says.