AmEx’s latest card costs more than the new iPhone

American Express

Credit, credit, on the card, how much in annual fees shall we charge? For American Express, the answer is $895. The company unveiled its updated Platinum Card yesterday, with a major price increase and new lifestyle and travel benefits geared toward wealthy millennials and Gen Zers. The new annual fee represents a nearly 30% jump from the card’s previous yearly price of $695. To justify it, AmEx is offering a total of $3,500 in possible yearly rewards—more than double that of the old Platinum. This includes: New credits to spend at Resy, Lululemon, Uber One, Paramount+, YouTube, and the smart ring company Oura. As much as $600 in hotel credits, up from $200. “We are not trying to attract every millennial and Gen Z.” Howard Grosfield, AmEx’s US Consumer Services group president, told the New York Times. “We found a way to hit the heartstrings of the subset of truly premium millennial and Gen Z’s.” AmEx showed that millennials and Gen Z made up its fastest-growing customer base in its annual report last year. Meanwhile…Chase recently refreshed its competing card, the Sapphire Reserve, and raised its annual fee by 45% to $795. Citibank also launched a travel-focused card for $595. Money to be made: The top 10% of earners in the US currently account for nearly half of all consumer spending.—ML