Amex Mounts Banner First Half of 2024, Thanks to Gen Z
While some Americans are tightening their budgets, American Express cardholders are still spending to their hearts’ content. In the latest quarter, the credit giant saw a 6% year-over-year (YoY) increase in spending — even as discretionary spending barely grew. But the company’s real bright spot was attracting a surge of new cardholders, especially younger Americans who were once thought to avoid their high annual fees.
- In 2023, Gen Z and Millennials opened over three-quarters of new accounts for Amex’s flagship Platinum and Gold cards — consumers with higher earnings and credit scores than industry norms.
- Amex’s young clientele are willing to pay hefty annual fees — $695/year for the Platinum card or $250/year for the Gold card — in exchange for membership rewards, concierge benefits, and airport lounge access.
Card glow-up: Amex’s rapid growth has helped it meet a key promise to investors: to boost revenue by 10%+ YoY, outpacing credit and payment network competitors. This year, is up 29% year-to-date (YTD) — but after years of outperforming the S&P 500, Amex plans to refresh over 40 card products this year. This move might lead its younger, picky customers to evaluate if the new benefits are worth the higher annual fees.
