As it pursues younger consumers, the card company not only needs to ensure its high fee-bearing cards hold enough value, but also that the value isn’t too difficult to access.
Executives were deciding whether to serve a wider range of customers to get rid of the feeling of exclusivity or to focus more on the premium card market and keep the feeling of exclusivity.
Betting on its aspirational distinction, Amex opted for the latter, focusing on the notion “that if we put value in our value propositions, then our premium consumers will pay for that value,” Amex Chief Financial Officer Jeff Campbell said Feb. 15 at the Bank of America financial services conference.
The next challenge: Step up efforts to attract younger generations. He said, “If you want to grow your business, you probably don’t want to grow it with people 60 and older.” Riley is co-head of payments at Javelin Strategy.
New York-based Amex sought to rejuvenate card benefits and digital capabilities, along with marketing and brand positioning. But when cards are updated, fees go up. For example, the company’s platinum card now has an annual fee of $695 after being updated in 2021.
Despite that price tag, about 70% of Amex’s new cardholders last year acquired premium cards, which includes any of its cards that come with an annual fee. Millennial and Gen Z consumers made up three-quarters of that new group — a larger share than the company has seen in the last two decades, Campbell said.
Good morning, everyone! Have you ever thought about how many people have the American Express Platinum Card, that shiny piece of plastic that says “I’ve made it”? That’s been on my mind for a while now. This isn’t just any credit card; it’s like a VIP pass to a world of high-class living, free travel, and pure fame. There are a lot of people in this exclusive club. I won’t tell you the exact number, but I’ve found some interesting estimates and information to share with you. Hold on tight, because we’re about to dive deep into the mystery of Amex Platinum cardholders!
The Big Question: How Many Are There, Really?
First things first, I have to be honest with you: American Express isn’t going to tell you how many Platinum cardholders there are. When it comes to these stats, they’re tighter than a drum, keeping it all secret to keep that air of exclusivity. But based on talk in the business world and old-fashioned detective work, there are estimates going around that give us a rough idea.
Word on the street, from a few years back pegged the combined number of Platinum and Centurion (the even fancier “Black Card”) holders at about 1.3 million in the U.S. alone. Fast forward to now and some folks reckon that number mighta doubled—puttin’ Platinum cardholders somewhere in the low millions, maybe around 2 million or so domestically. That’s still a tiny sliver compared to the total 121.7 million Amex cards out there globally, mind ya. So, while we can’t pin it down to the last person, it’s safe to say this crowd is small, elite, and damn hard to join.
Why So Secretive? The Power of Mystery
“Why the heck don’t they just tell us?” you might ask. I think it’s all part of the game. This Amex Platinum card has become a badge of honor for high rollers and a sign of wealth. By not giving out the numbers, they add to the mystery, like joining a secret club where only a few people can shake hands. It’s marketing genius, if ya ask me.
This secrecy also keeps the competition guessin’ Other premium cards, like the Chase Sapphire Reserve, are vyin’ for the same big spenders, and Amex ain’t about to hand over intel on how big their slice of the pie is Plus, it makes holdin’ the card feel special. If everyone knew millions had it, would it still feel like a golden ticket? Prolly not.
Who’s Got the Platinum Card? A Peek at the Elite
Alright, so we’ve got a rough idea of the numbers—low millions, most likely. But who are these folks? I’ve pieced together a picture of the typical Platinum cardholder, and lemme tell ya, it’s a crowd livin’ the high life.
- Age: On average, these cardholders are around 56 years old. Yeah, we’re talkin’ seasoned pros, folks who’ve climbed the ladder and got the wrinkles to prove it.
- Income: Their household income? A cool $474,000 on average. That’s some serious dough, way above what most of us are pullin’ in.
- Net Worth: Get this—their average net worth sits at a jaw-droppin’ $4.3 million. These ain’t just rich; they’re loaded.
- Property: They own, on average, 3.6 properties. Not just a house, but multiple cribs—maybe a beach pad and a city penthouse to boot.
Here’s a quick table to break it down for ya:
| Characteristic | Average for Platinum Cardholders |
|---|---|
| Age | 56 years old |
| Household Income | $474,000 |
| Net Worth | $4.3 million |
| Properties Owned | 3.6 |
Now, before ya think it’s all old-timers, there’s a twist. Millennials and younger people are coming to the party more than the numbers show. They’re using smart methods, like turning in cards for points, to get a Platinum card without having to be rich. So, while the average is older and wealthier, there are more and more young people who are tech-savvy and want to travel.
What Makes the Platinum Card So Dang Special?
I bet you’re wonderin’ why anyone would shell out for this card, especially with an annual fee that’ll set ya back $695. Well, lemme lay out the goodies that come with it. Trust me, for the right person, this card is like a magic wand for travel and lifestyle perks.
- Airport Lounge Access: We’re talkin’ entry to over 1,200 lounges worldwide. Imagine sippin’ a free cocktail while waitin’ for your flight, away from the terminal chaos. Pure bliss.
- Travel Credits: You get $200 in Uber credits each year, plus a $200 airline fee credit for stuff like baggage fees or in-flight snacks. That’s cash back in your pocket.
- Hotel Perks: Elite status with big-name hotel chains, meanin’ upgrades, late check-outs, and sometimes free breakfasts. It’s like bein’ treated as royalty.
- Points Bonanza: Earn 5x points on flights booked directly with airlines or through Amex Travel. If you’re a frequent flyer, those points stack up quick for future trips.
- Other Goodies: Think $100 credit for Global Entry or TSA PreCheck, savin’ ya time at security, plus purchase protections for big buys. It’s the little things that add up.
For someone who travels a ton or spends big, these benefits can easily outweigh the steep fee. I’ve heard stories of folks savin’ thousands on business class tickets through special programs tied to the card. It’s not just a card; it’s a lifestyle upgrade—if ya play it right.
The Exclusivity Factor: Is It Still a Big Deal?
Back in the day, havin’ an Amex Platinum felt like joinin’ an elite club—somethin’ only the top dogs could swing. But with numbers possibly hittin’ a couple million, some folks are askin’ if it’s lost its shine. I mean, if everyone and their cousin’s got one, is it still special?
Here’s my take: yeah, it still packs a punch. Even at 2 million holders, that’s a tiny fraction compared to the gazillions of regular credit cards out there. Plus, the high fee and income needed to make the perks worth it keep the riff-raff out (no offense to us regular folks). And let’s be real—whippin’ out that metal card at a fancy restaurant still turns heads. It’s not just about the numbers; it’s the vibe, the status, the “I’m somebody” feelin’ it gives ya.
But I ain’t gonna sugarcoat it. Some longtime holders grumble that Amex is handin’ these out too easy now, with big sign-up bonuses temptin’ anyone with decent credit to apply. They’ve added “coupon book” style credits for stuff like streaming services to appeal to a wider crowd, which kinda dilutes the old-school prestige. Still, for most of us lookin’ in from the outside, it remains a symbol of the good life.
How’d the Numbers Grow? Trends and Shifts
So, if we’re guessin’ around 2 million Platinum cardholders now, how’d we get here from the 1.3 million (including Centurion) a few years back? I’ve been thinkin’ on this, and a few things stand out.
First, Amex has been pushin’ hard to grab younger, tech-savvy spenders. They’ve rolled out benefits that vibe with millennials—like credits for Uber and streaming—makin’ the card appeal to a crowd that values experiences over just flashin’ cash. Second, durin’ the pandemic, when travel tanked, they adapted quick with perks for stay-at-home life, keepin’ folks from ditchin’ the card and even pullin’ in newbies.
Third, their sign-up bonuses have been bonkers lately. I’ve heard of offers givin’ away 100,000 to 150,000 points for meetin’ spendin’ goals. That’s a huge lure for points junkies who wanna rack up rewards fast. Add in “No Lifetime Language” offers—meanin’ ya can snag a bonus even if ya had the card before—and it’s no wonder numbers are climbin’.
The Competition: How Amex Stays Ahead
Let’s not kid ourselves—Amex ain’t the only player in the premium card game. Cards like Chase Sapphire Reserve and Citi Prestige are gunnin’ for the same fat wallets. So how does Platinum keep its edge? Well, for one, their brand is straight-up legendary. “Membership has its privileges” ain’t just a slogan; it’s a feelin’ they’ve baked into every perk.
They’ve also got a knack for evolvin’. When travel took a hit, they tossed in credits for everyday stuff to keep cardholders happy. Their Centurion Lounges, while sometimes crowded, are still a cut above what most competitors offer. And let’s not forget the metal card itself—it’s a convo starter, a flex, a piece of art almost. Competitors got perks too, but Amex has the swagger.
Is the Platinum Card Worth It for Regular Folks Like Us?
Now, I gotta throw this out there—should you or I even think about gettin’ this card? With a $695 annual fee, it’s a big ask for most wallets. If ya don’t travel much or spend big on flights, prolly not. You’d be stuck chasin’ credits for stuff ya don’t need just to break even. But if you’re jet-settin’ regular or got a lifestyle that matches the perks, it could be a game-changer.
I’ve chatted with buddies who swear by it for business travel—lounge access and points make their trips smoother and cheaper in the long run. Others, though, call it a “glorified coupon book,” sayin’ they’re tired of trackin’ credits. It’s all about your vibe. If ya live large and travel often, it might be your jam. If not, stick to somethin’ simpler.
The Cultural Impact: More Than Just a Card
Here’s somethin’ wild to chew on—the Amex Platinum ain’t just a financial tool; it’s a cultural icon. It pops up in movies, rap lyrics, and social media flexes as the card to have if you’re ballin’. It’s tied to ideas of success, luxury, and bein’ at the top of the heap. Even if the numbers are growin’, that image holds strong.
I remember seein’ a vid online where a guy paid for a fancy dinner with his Platinum card, and the whole table was like, “Whoa, big shot!” That’s the kinda reaction it gets. It’s not just about buyin’ stuff; it’s about sayin’ somethin’ about who ya are—or who ya wanna be. That’s powerful, and Amex knows it.
Wrappin’ It Up: The Mystery Endures
So, back to the big question—how many Platinum card holders are there? We’re stuck with estimates, likely around a couple million in the U.S., a small but growin’ elite. Amex keeps the real number locked away, and honestly, that’s part of the charm. It’s a club we can peek at but not fully know, and that keeps us curious.
What I love about this whole deal is how it shows the power of perception. The Platinum card, with its hefty fee and killer perks, ain’t just plastic—it’s a dream, a status, a ticket to a world most of us only glimpse. Whether you’re one of the lucky few holdin’ it or just wonderin’ about ‘em, there’s no denyin’ its pull. So, what do ya think—would you ever chase that metal card, or is it just a fancy pipe dream? Drop your thoughts, ‘cause I’m all ears!
Fending off the competition
Compared to rivals, the platinum card’s complex array of fee credits has been compared to a coupon book, said credit card consultant Jason Steele. Amex could risk making its value proposition “too difficult to realize,” he said.
Comparable cards include Chase’s Sapphire Reserve card or Capital One’s Venture X Rewards card.
If Amex expects to attract younger consumers, it will need to demonstrate how its card benefits are valuable in their eyes and simple to access, consultants and analysts said.
To some degree, rivals have begun to put pressure on Amex’s premium corner of the market. “For a while, people thought it was an old brand,” said Ryan Nash, an analyst at Goldman Sachs.
Even though Amex doesn’t say how its cards are split up by market share, and other card companies didn’t either, there are data points that show demographics of cardholders.
In the fourth quarter of last year, millennial and Gen Z customers were responsible for 30% of billed business in Amexs consumer division, compared to Gen X generating 37% and baby boomers and older driving 33%, according to the company’s fourth-quarter earnings presentation.
Millennials were born between 1981 and 1996, meaning they’re mainly in their 30s, while Generation Z refers to younger adults born after 1996, who are under 27 years old, according to Pew Research Center.
The annual fee for Amex’s platinum card is almost $700. The annual fee for its gold card is $250, and the annual fee for its green card is $150. The company also has co-branded cards that come with annual fees.
In the past, Amex employed a “low and grow” strategy, bringing on young customers with no-fee products and tightly controlled credit lines, and moving them to fee-bearing cards over time. Realizing it was leaving money on the table, the company changed its approach several years ago, opening up premium cards to younger customers.
That shift was indicative of Amex “waking up and realizing we can pivot our value proposition and do a better job,” Campbell said during that recent conference appearance. Amex declined to make an executive available for an interview on the topic.
The company is pushing its aspirational connotation with younger generations. In one recent Amex commercial, a young woman trades a greasy spoon for finer dining, takes her parents to a Broadway show and opts for a Caribbean vacation over a Florida beach.
The ad closes with the narrator asserting, “With Amex, it’s never a question of if you’re going to level up. It’s when.”
Another Amex ad spot taps into younger generations’ “fear of missing out,” featuring vignettes of 20- and 30-somethings talking about their one-of-a-kind experiences at concerts, on trips or in restaurants. “Face it, you had to be there,” a woman says. “You really missed out, ‘cause we had the best time of our lives.”
The company is building on that sentiment with its referral program, offering customers incentives for getting friends to sign up for cards. It’s become one of Amex’s largest sources of new customers. Younger cardholders who’ve referred friends tend to become more dedicated users themselves, Campbell noted.
The company has also turned to the social media platform TikTok, where influencer-types break down card perks. Amex has “done a really good job in taking the marketing budget to places where the customer is and where the customer is engaging,” Nash said.
Compared to older generations, digitally savvy millennial and Gen Z customers tend to be more engaged with the host of card benefits they’re getting. “That’s how they get comfortable that this is a very good economic proposition for them,” Campbell said Feb. 28 during the KBW Fintech and Payments Conference.
Consumer awareness of points and perks has exploded as those generations have matured, and many younger consumers have latched onto the ability to maximize rewards offerings.
Amex benefits such as access to an exclusive airport lounge “are a little bit hard to put a price on,” said Bank of America Securities Analyst Mihir Bhatia. That cache has helped the company draw in younger affluent consumers.
Besides the travel-related perks Amex is known for, such as hotel credits, its cards come with streaming service or Grubhub credits.
The card company’s customer base is enticing to merchant partners who want access to those consumers, and those partners help fund the value proposition for Amex. The company considers not only which partners want access to its customers, but which partners would be of most interest to younger generations, Campbell said.
Some platinum card benefits, such as credits for ride share company Uber or fitness brand Equinox, probably hold more allure for younger consumers, while older cardholders might be more interested in a Saks Fifth Avenue credit, Steele noted. “Not everyones going to use all these benefits, but in the end, is the consumer going to feel like theyve got their $695 worth?” he said.
Even as the company touts its millennial and Gen Z acquisitions, those signing on for its priciest cards are a small subset. Amex has about 70 million proprietary cards in circulation, of which 70% are fee-bearing cards. Platinum and gold make up less than 10% of that, Nash estimated.
Of the approximately three million customers Amex acquired last quarter, about 100,000 to 150,000 millennials and Gen Zers signed on for platinum or gold cards, Nash calculated.
The company is counting on continued uptake with younger generations to fuel its own aspirations. Amex’s card fee revenue jumped 25% last quarter, and “there’s a long, long runway for it to continue to be one of our fastest-growing revenue lines,” Campbell said.
In targeting double-digit revenue growth for the next decade, Amex likely expects to raise card fees $75 to $100 every three to five years, Nash said.
That bet, however, requires a sharp focus on creative ways to draw in millennial and Gen Z consumers. It also requires boosting the amount they’re willing to pay for perks.
“We have a strong bit of historical experience that tells us we can keep moving prices up,” Campbell said.
Even if those consumers are willing to pay, there’s “some market hesitation” around Amex’s strategy with regard to younger generations, Nash noted. The new generation may disappoint the company in the end.
As inflation and rising interest rates stress consumers, Amex will be testing whether some of the young consumers, with untested credit histories, live up to its expectations, Nash said.
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Amex Platinum Authorized User Benefits 2022! (Explained)
FAQ
How many platinum cards are there?
The Platinum card you thought you were familiar with actually comes in four versions: The Platinum Card® from American Express (Terms apply, see rates & fees) The Platinum Card® from American Express for Charles Schwab* The Platinum Card® from American Express exclusively for Morgan Stanley*.
What percent of people have Amex Platinum?
Amex has about 70 million proprietary cards in circulation, of which 70% are fee-bearing cards. Platinum and gold make up less than 10% of that, Nash estimated.
Is a platinum credit card prestigious?
A Titanium or a Platinum credit card is the most prestigious credit card offering maximum benefits, rewards points, and cash back.
What is the annual income for a platinum card?
For annual incomes above S$120,000, your Platinum Card does not have a pre-set spending limit. For annual incomes below S$120,000, there is a spending limit of up to 4 times your monthly income.