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Premium credit cards have become a high-stakes competition. Banks are raising fees, adding exclusive lounges, and redesigning rewards to attract affluent consumers. This month's earnings reports and product updates show the competition is only heating up.
Affluent households spend 4.3 times the general population on discretionary purchases, according to a Mastercard report. That gap is why Amex and JPMorgan Chase are both spending heavily to win this segment.
Both Amex and Chase have expanded premium hospitality beyond airport lounges. Amex Platinum cardholders got lounge access at the US Open, Stagecoach music festival, and multiple Formula 1 races. Chase Sapphire Reserve cardholders had lounges at Lollapalooza, Sundance Film Festival, and Miami Art Week.
Amex now has partnerships with more than 20 venues globally, with eight featuring permanent lounges. Chase has built out permanent spaces at Madison Square Garden and the Chicago Theatre.
The Amex Platinum card carries an $895 annual fee. The Chase Sapphire Reserve sits at $795. Both raised fees last year. Amex credit card fee revenue totaled nearly $10B in 2025, up roughly 18% from 2024.
"It's very expensive, but I think what's happening is that the issuers are finding that this is a premium differentiator."
Donald Fandetti, Wells Fargo
The strategy is deliberate. Amex shifted marketing dollars away from no-fee cards toward premium offerings. Its Platinum portfolio is now the fastest-growing in Amex's US consumer business.
The premium push is not free. American Express posted Q2 revenue of $19.64B, with card member spending rising 9%, its highest growth rate in three years.
That momentum came largely from premium customers, who spent nearly three times as much each month as lower-fee cardholders during the past year.
However, expenses surged 12%, with the company attributing the jump to higher customer engagement costs and expenses tied to updating the US Platinum card.
Some investors had hoped for a bigger acceleration in guidance but Amex maintained its full-year earnings per share outlook of $17.30 to $17.90.
Capital One offered a contrast. Its Q2 net income hit $3B, beating estimates, as credit losses fell. The provision for credit losses dropped $1.1B quarter-over-quarter. Capital One is also integrating its Discover acquisition and recently closed its purchase of Brex, adding corporate card exposure.
Robinhood is reworking its Platinum card after cardholders complained that the $695-annual-fee product felt like a "coupon book." Spending minimums blocked access to most perks.
Robinhood says more than 50K people requested the card in the week of its initial announcement. The company is targeting its highest-spending Gold subscribers first.
The broader rewards challenge is real across issuers. Under half of card issuers say their current rewards drive loyalty or retention, according to PYMNTS Intelligence research. Only 40% say incentives affect the timing of cardholder spending.
The premium card sector is running a high-cost, high-stakes playbook. Issuers that convert lounge access and lifestyle perks into genuine spending loyalty will hold the edge. Those that can't will keep absorbing the expense without the retention.
