For a lot of, the American Specific card is seen as a badge of success. However, as many cardholders in Europe will know all too nicely, exterior of the key cities, Amex is usually rejected by retailers.
However as the worldwide bank card big continues to make inroads with reluctant retailers, it’s betting on sweeping up younger prospects with the assistance of the world’s largest pop stars.
Amex’s chief working officer Elizabeth Rutledge instructed Fortune that Gen Z and millennials had been now buying 68% of its playing cards globally.
These youthful buyers are hooked on life-style perks like leisure, eating, and journey. Amex now caters to these wants with an enormous deal with the leisure sector.
“It’s experiencing the excitement of a Formula One race, or it’s getting access to some exclusive dining experiences,” Rutledge mentioned.
Within the U.Okay., Amex has focused younger Brits with partnerships at London festivals like British Summer season Time and All Factors East. Cardholders can profit from early entry to tickets and obtain perks on-site.
The group partnered with Gen Z pop celebrity Olivia Rodrigo final yr on her profitable second album, Guts, and a corresponding sell-out world tour.
Amex hosted a particular occasion in Berlin following Rodrigo’s live performance there, the place card members and different followers loved native artists and DJs at an after-party. Followers additionally bought entry to devoted checkout traces for limited-edition merchandise.
The truth that reportedly almost 60% of Gen Zs describe themselves as “super fans” of their favourite artists, Rutledge says, will increase the attraction of those perks.
As well as, Amex provides card members the possibility to attend unique eating occasions, together with new restaurant openings, together with Nice British Menu winner Dan McGeorge’s new spot Vetch in Liverpool.
The hope is that getting a youthful viewers into Amex means they may stick with the cardboard as their incomes develop into their later years.
“They’re really representing a strong potential lifetime value for us, given that we can be with them through all their different life cycles as their needs evolve and change.”
Amex’s playbook is the identical within the U.S., the place the group realized Gen Z and millennials’ common demand for experiences and started adjusting their rewards.
It marks a pivot from a historic deal with points-based rewards and different advantages, which proceed to in sustaining spend amongst members. Partnerships with sure merchandise, like Disney+, permit customers to profit from discounted subscriptions. Procuring with different retailers, like RayBan, provides Amex prospects cashback alternatives.
Amex has tried a number of methods up to now to woo younger prospects, nevertheless it’s proved to be a studying curve.
“Until about 10 to 15 years ago, we thought that no-fee cards were the entry point to bring in younger customers to the franchise,” Howard Grosfield, president of U.S. client companies at American Specific, instructed Fortune in June.
“We’ve learned that that’s not the right strategy for millennials and Gen Zs. They like the brand affiliation. They like to travel and eat out, and they like the special access and experiences that come with our premium cards.”
Amex nonetheless expects its younger buyers to make higher use of its conventional rewards system as they age. Within the meantime, although, getting Gen Z and millennials hooked on experiences is proving a profitable gateway to them holding down Amex playing cards.
Nonetheless, Europe continues to pose obstacles to the corporate’s progress.
European inroads
Amex has lengthy lagged behind in Europe in contrast with its presence within the U.S. Retailers and meals distributors, significantly small ones, have been reluctant to simply accept the cardboard of their shops owing to excessive transaction charges. They’ve as an alternative opted to simply accept Amex’s arch-rivals Visa and Mastercard.
The group is utilizing third-party partnerships, together with a take care of PayPal, to permit buyers to make use of their Amex on the continent.
“We’re focused on expanding acceptance in key cities where our card members live, work, and travel,” Rutledge mentioned.
Amex’s rewards applications have lengthy been its USP towards different bank card suppliers, and as Gen Z and millennials get hooked on Purchase-now, pay-later corporations like Klarna, Amex is leaning into perks the interest-free lender can’t compete with.
Nonetheless, Amex’s charges proceed to hinder the corporate’s potential to get Europeans to spend on its playing cards, in addition to the hundreds of thousands of People who journey to the continent yearly.
In June, eBay banned using Amex on its website, citing “unacceptably high fees,” making a threat that different retailers might observe go well with in an ongoing struggle over bank card charges. Clients are nonetheless ready to make use of their Amex on eBay via PayPal.
“We’re definitely disappointed that eBay made the decision to stop accepting American Express cards,” Rutledge mentioned.
“By doing so, I think they’re going to limit customers’ payment choices and take away that service and that security.”
Rutledge added that eBay solely represents 0.2% of its complete community quantity.
