As major issuers vie for the dominance in the premium credit card market, American Express appears to have pulled ahead, posting a standout third quarter fueled largely by its more affluent customers.
The company reported a 16% increase in Q3 profits, despite heightened competition among luxury card offerings. The average spend per Amex cardholder rose to $6,387, up 5% from a year earlier, and more members are now carrying balances on their cards.
Amex also saw a lift from higher fees. In September, it raised the annual fee on its Platinum Card from $695 to $895, while enhancing its perks and rewards program through new partnerships with Resy and Lululemon.
Following its strong Q3 results, American Express raised its full-year 2025 guidance, now projecting revenue growth between 9% and 10%.
“American Express is positioned well to leverage its recently improved credit card,” said Brian Riley, Director of Credit at Javelin Strategy & Research. “It has taken the pain out of an annual fee with an array of features that quickly offset the cost.”
Competition in the Luxury Space
Amex’s success comes even as competitors raise both the features and fees on cards targeting the affluent market. Citi entered the premium space last month with the launch of its Strata Elite card, which carries an annual fee of $595.
JPMorgan Chase also revamped its Chase Sapphire Reserve Card in June, increasing its annual fee from $550 to $795. To offset the higher cost, the company introduced a Points Boost feature, giving users the opportunity to double their points.
A Certain Cache
So far, consumers don’t seemed deterred by the rising prices. In fact, many have embraced the opportunity to showcase their upgraded perks. As part of its own refresh, Amex introduced a limited-edition mirrored version of its Platinum card. The company had expected about half a million requests by the end of the year—but it reached that milestone in just three weeks.
“Just when metal cards created a new class of customer features, Amex brings in the mirrored card that people love,” said Riley. “This illustrates how American Express addresses details well beyond the structure of the payment card. The firm has a long history of creating a certain cache with its cards, dating back to the old green card days. And it looks like high-net-worth customers are stepping up. You can see it in their volumes.”
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