American Express to Invest Heavily in Platinum Card Upgrade for Millennials and Gen Z

American Express is planning a significant upgrade to its Platinum card, aiming to attract a lucrative and fast-growing segment of customers: Millennials and Gen Z. The company's CEO, Steve Squeri, has hinted at this major investment, which is set to be implemented late this summer or in the early fall. This upgrade is described as the biggest investment ever in a card program by American Express.

The Platinum card, priced at $695 annually, is positioned as the most expensive in its class. However, the younger demographics, aged mid-20s to mid-40s, perceive the value of the card to be well beyond its annual fee. This segment now comprises 75% of new accounts acquired on American Express's two premium cards, Platinum and Gold, for 2024, up from 60% in 2019. The growth in Gen Z consumer card members has been particularly notable, with a 40% increase in Q1 2025 compared to Q1 2024. These younger customers have shown better credit records than the industry average and accounted for 35% of U.S. consumer spend last quarter. The loyalty of these customers is also high, with an all-in retention figure of 98%.

This strategy was initiated in 2021 when Squeri identified that attracting a younger generation of shoppers was the best path to growth for the financial services giant. The focus shifted from affluent boomers to Millennials and Gen Z, targeting high-income individuals with excellent credit records. Prior to this shift, the Platinum card benefits were primarily travel-focused, offering deals on hotel stays, airfares, and airport lounge access. As the COVID lockdown lifted, American Express broadened its offerings to include entertainment, wellness, and upscale shopping perks, recognizing the digital-native lifestyle of these younger customers.

The new array of perks covers various aspects of the younger generation's leisure lives. These include a digital entertainment benefit of $240 a year towards subscriptions for providers like Disney+, ESPN+, and Hulu, $200 a year for Uber rides, and $300 towards memberships at Equinox and SoulCycle. For shopping, the card offers a $100 credit at Saks Fifth Avenue and a Walmart+ membership with discounts on fuel and in-home pickups for returns. The travel services are increasingly personalized, with 7,000 personal travel consultants available to plan itineraries and book experiences.

American Express has also made a significant foray into restaurant reservations. In 2018, the company acquired Resy, an app that guarantees Platinum holders bookings at popular eateries. Today, Resy partners with 20,000 restaurants in thirty countries and has expanded its reach by acquiring Tock, adding 7,000 culinary partners, including wineries. This makes American Express the only credit card operator with its own restaurant reservations platform, unlocking access to the world's most sought-after tables.