AmEx burnishes benefits for Platinum Card holders
Users of high-end card, now made of steel, will get Uber credit of $200.
Facing intense competition for its higher-spending customers, American Express is expanding the benefits it offers its high-end Platinum Card members, like a $200 credit on Uber. But those benefits will come with a higher annual fee.
In addition to the Uber benefit, Platinum Card holders will now be able to earn five points per dollar on hotels, American Express said Thursday. That’ll be as of March 30. Popular current benefits, such as the $200 airline fee credit, airport lounge access or the five points per dollar spent on airlines, are staying. The annual fee, though, is rising to $550 from $450.
The design of the Platinum Card is also getting a polish. The account number and expiration date will move to the back and the “member since” logo will be slightly larger. The Platinum Card will now be issued in stainless steel instead of plastic, similar to the Chase Sapphire Reserve Card and AmEx’s Centurion Card, the invitation-only card for the extremely rich and celebrities.
“It’s a suite of new and enhanced benefits that translates into a new Platinum Card for a new generation of customer,” said Janey Whiteside, who heads the Platinum Card division at American Express.
Whiteside sees the Uber credit as a perk that will appeal to mil- lennials in particular. “When we looked at who we should partner with, Uber made a lot of sense,” Whiteside said. She also noted that it was the first increase in the annual fee on the Platinum Card in 10 years.
American Express effectively created the market for high-end credit cards more than 30 years ago when it introduced the Gold and Platinum Cards. The cards were designed for frequent travelers and well-to-do customers willing to pay substantial annual fees to get access to airport lounges, special events or dedicated customer service.
But the market AmEx once dominated has become increasingly competitive. Citigroup took the first shot in 2014, redesigning the Citi Prestige Card with help from recently poached AmEx execu- tives — but Prestige never caught as much consumer attention as the Platinum Card.
Citi did take a significant chunk of American Express’ business last year by taking over the Costco credit card.
T h e mos t d i r e c t t h r e a t t o AmEx’s hold on the high-end consumer has come from JPMorgan Chase, which launched the Sapphire Reserve Card last year. Even with its $450 annual fee, interest in the card was so hot that Chase ran out of the metal to make the cards within days of launch.
Soon after the Sapphire Reserve debuted, AmEx announced an upgrade to its points program for Platinum Card customers, allowing five points per dollar to be earned on airfare instead of one point.