The company announced Monday (June 16) that it was planning a “refresh” to its U.S. consumer and business Platinum cards, without offering details about the planned changes. More information will be released this fall, the announcement added.
“Platinum Card benefits and services resonate across generations, particularly with Millennial and Gen Z who accounted for 35% of total U.S. consumer spending last quarter,” Howard Grosfield, group president for U.S. consumer services at American Express (Amex), said in the announcement.
“We’re going to take these cards to a new level, not only in what they offer in travel, dining and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers,” Grosfield added.
Earlier this year, Amex predicted that Gen Z and millennial consumers would continue to drive growth, due to these age group’s higher average FICO scores and lower delinquency rates compared to wider industry benchmarks.
“Our millennial and Gen Zs are performing significantly better both from a FICO perspective and from a delinquency perspective than the industry,” American Express Chairman and CEO Stephen Squeri said during an April earnings call.
While these younger consumers tend to spend about 20% less overall than older generations, their spending is growing at a swift clip, especially in international markets, with the company reporting a 22% year-over-year jump in overseas spending.
Amex also noted that younger consumers tend to revolve balances less often, though that trend does not appear to be hurting revenue.
Meanwhile, PYMNTS wrote last week about efforts by FinTech companies to attract Gen Z consumers. This age group prefers FinTechs to traditional banks, with 54% of them relying primarily on non-traditional financial service firms, according to PYMNTS intelligence research.
This has left financial institutions from FinTechs to large banks and credit unions, finding themselves rethinking strategies to appeal to Gen Z.
“They want products aligned with their values, aligned with their lifestyle, and they want to be digitally present,” said Gavin Michael, CEO of digital-only Varo Bank, during a recent panel discussion with PYMNTS CEO Karen Webster.
For Varo, serving Gen Z involves flexibility and transparency through products such as Varo Advance, which offers short-term cash advances, as well as an artificial intelligence (AI)-powered line of credit.
“We’re underwriting these products based on cash flow, not traditional credit histories,” Michael added, stressing tailored solutions that match Gen Z’s lifestyle demands.
