Amex says the rate of new card accounts has doubled since it introduced its pricey new Platinum card
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Amex says the rate of new card accounts has doubled since it introduced its pricey new Platinum card
""New Platinum account acquisitions are running at twice the level before the refresh," CEO Stephen Squeri said on the company's third-quarter earnings call on Friday. So far, he said it's the "strongest start" the company has seen for a US Platinum refresh (this is the third in the last decade). Amex unveiled its new Platinum card in September, which has an annual fee of $895."
"As the luxury credit card wars have heated up - Chase upped its Sapphire Reserve fee and Citi introduced its Strata Elite card this summer - some have grumbled over the ever-climbing fees. According to JPMorgan Chase CFO Jeremy Barnum, however, they're not having any trouble convincing people to pay the now $795 fee for its refreshed card. "This has already been the best year ever for new account acquisitions for our Sapphire portfolio," he said on Chase's third-quarter earnings call on Tuesday."
American Express reported new Platinum account acquisitions are running at twice the level before the card's recent refresh. The revamped Platinum card carries an $895 annual fee, and retention among existing cardholders has remained stable with a delayed $200 price hike for current members. Younger cardholders, including millennials and Gen Z, are spending strongly and responding to wellness and entertainment perks. Competitors have also raised fees; Chase increased its Sapphire Reserve fee to $795 and reported its best year ever for new elite-card account acquisitions. Citi introduced its Strata Elite card amid intensified luxury credit card competition.
Read at Business Insider
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