Expected Updates Coming to American Express Platinum Cards in the Remainder of the Year
Scoop: Credit Card Giants Amex and Chase Set to Uplevel Their Premium Offerings
Get ready, cardholders! American Express (AXP) and Chase (JPM) have some exciting changes up their sleeves for their premium credit cards. These peeks into the future come hot on the heels of JPM's Chase Sapphire Reserve, a formidable rival to Amex's Platinum, making waves with hints of summer changes - including a business version.
Amex isn't about to let a challenge go unanswered. In a bold announcement, they've promised "major updates" to their U.S. Consumer and Business versions of the Platinum cards later this year. With their hefty annual fees of $695 remaining unchanged for too long, it's no surprise that these upgrades are brewing.
As for what's in store, Howard Grosfield, the group president of American Express' U.S. Consumer Services, let the cat out of the bag, "We're going to take these Cards to a new level, not only in what they offer in travel, dining, and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers."
Chase's upcoming changes, due in the summer, will also include a business version of the Sapphire Reserve — a move that's expected to send the annual fee spiraling. While the current fee stands at $550, industry insiders predict a substantial increase as soon as the adjustments kick in.
A Bank of America survey of 2,000 Americans last week revealed some interesting insights. Among consumers rocking the premium cards (those with an annual fee of at least $250), only 33% prized cash back most. Stunningly, 52% found themselves more captivated by card points.
If you're a high roller brave enough to take on the steep annual fees, these premium cards aren't all bad news. You'll be treated to jaw-dropping welcome points bonuses. For instance, the personal version of the American Express Platinum card currently dishes out up to 175,000 Membership Rewards Points if you fork over $8,000 on purchases in six months. Business cardholders, on the other hand, can score up to 250,000 points if they splash out $20,000 on eligible purchases in just three months. Let's not forget the Chase Sapphire Reserve, boasting a welcome bonus of 60,000 Ultimate Rewards points once you hit $5,000 in spending during the first three months.
So, there you have it! The race to woo premium cardholders is heating up, with card issuers expected to up their game by increasing annual fees and expanding benefits while keeping an eye on the preferences of the younger market that's increasingly smitten with points and lifestyle perks. Stay tuned for more developments in the ever-evolving world of credit cards!
- In response to the summer changes in the Chase Sapphire Reserve, American Express plans to introduce "major updates" to both the consumer and business versions of their Platinum cards, aiming to compete by offering improved travel, dining, and lifestyle benefits, as well as a fresh look and feel.
- As part of its upcoming changes, Chase will also launch a business version of the Sapphire Reserve, prompting speculation of an increased annual fee to match the card's enhanced offerings.
- A survey of 2,000 Americans revealed that while only 33% of premium cardholders prioritize cash back, a majority of 52% are more attracted to card points, indicating a shift in preferences towards token-based rewards in the finance and investing business.
