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There\u2019s always been something elitist about whipping out an American Express<\/a> card. For one, they often come with an annual fee that can feel hefty for many Americans\u2014and they\u2019ve also long been associated with travel perks that only made sense for the well-off. Plus, Amex wasn\u2019t always accepted everywhere due to its transaction fees. This consumer profile most closely resonated with baby boomers and older generations.\u00a0<\/p>\n But now, Gen Zers are clamoring to get their hands on that shiny gold plastic. Indeed, this generation, along with millennials, accounted for 75% of new consumer platinum and consumer gold accounts in 2023, Howard Grosfield, president of U.S. consumer services at American Express, tells Fortune<\/em>.\u00a0<\/p>\n \u201cAmex is becoming the card for an entirely new generation,\u201d Grosfield says. \u201cOur premium products and membership model resonate with high-credit quality, high-spending younger customers, which means we capture a longer relationship over their lifetime and grow with them into their peak spending years.\u201d<\/p>\n It may seem surprising that younger generations facing high inflation, student loans, and high housing costs would go for a card they have to pay for. (A platinum Amex card comes with an annual fee of $695<\/a>). But millennials and Gen Zers are indeed willing to shell out for a card that comes with \u201clifestyle\u201d perks that go beyond just travel points. The platinum card comes with entertainment credits to subscribe to platforms such as Hulu<\/a> and The New York Times<\/em>, as well as Uber<\/a> cash, airport lounge access, and even credit to shop at Saks. A platinum card offers $1,500 in value per year relative to its yearly fee, according to Amex.\u00a0<\/p>\n \u201cUntil about 10 to 15 years ago, we thought that no-fee cards were the entry point to bring in younger customers to the franchise,\u201d Grosfield says. \u201cWe\u2019ve learned that that\u2019s 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.\u201d<\/p>\n It also helps that more merchants are accepting Amex than in the past, helping the card shed its occasional reputation as fussy or elitist.. While Amex has long offered more-generous perks than other cards, the flipside is its relative priciness for merchants meant it wasn\u2019t accepted everywhere. Competitor Visa<\/a> had great success trolling Amex with its 20-year \u201cIt\u2019s Everywhere You Want to Be\u201d advertising campaign.\u00a0<\/p>\n However, that\u2019s now shifted as the number of locations globally that accept American Express cards has more than tripled since 2017, a company spokesperson tells Fortune<\/em>. \u201cNearly 18 million stores and vendors accept Amex here in the U.S., as we maintain 99% parity coverage with other credit card networks,\u201d Amex tells Fortune<\/em>.<\/p>\n Stil, the fee fights aren\u2019t over, as one major e-commerce company will stop accepting Amex<\/a> this summer: eBay<\/a>. The e-commerce platform will drop Amex payments in August, citing \u201cunacceptably high fees.\u201d (Amex\u2019s spokesperson says they are \u201cdisappointed\u201d in the decision, which \u201cwill limit customers\u2019 payment choices.\u201d They add, \u201cOur research tells us that in the U.S. the cost of acceptance for American Express is comparable to what eBay pays for similar cards on other networks.)<\/p>\n While American Express has undoubtedly seen a wave of new, young customers, it doesn\u2019t mean they\u2019re shying away from their high-income or high-quality clientele. Amex customers still have \u201csuper prime FICOs and credit quality that outperforms their industry peers,\u201d Grosfield says. Plus, the average income of U.S. millennial and Gen Z customers is about 70% higher than the average income of those customers across the industry, an American Express spokesperson tells Fortune<\/em>.\u00a0<\/p>\n Their average 18-24 year old customer has a 679 credit score, while 25-40 year olds have a 686 average credit score, according to American Express<\/a>. When looking at the entire credit card industry, Gen Zers have an average credit score of 665, according to VantageScore CreditGauge<\/a>.<\/p>\n It\u2019s also important to recognize that the annual fee of the card isn\u2019t sustainable for everyone, and that fees on competitors\u2019 cards could fluctuate as these travel and lifestyle cards become even more popular. Even still, Gen Z is attracted to a luxury lifestyle<\/a>\u2014even if they can\u2019t afford it.<\/p>\n Amex \u201ctraditionally symbolized stability, coined for the older, affluent bunch,\u201d says\u00a0<\/p>\n Gloria Garcia Cisneros, a Gen Z wealth manager for LourdMurray. Gen Z\u2019s interest in the \u201ccard is more so because of the change in value proposition from AmEx. They are framing themselves in a new light and Gen Z doesn\u2019t like to miss out on the newest and hottest trends.\u201d<\/p>\n While Amex has long been popular among the wealthy who collect travel points like no other, Gen Zers enjoy the perks of the card beyond flight and hotel points. With a more diversified set of perks, Gen Zers see the card as a way to get the most bang for their buck.\u00a0<\/p>\n Gen Z \u201cloves a good life hack,\u201d Gabriela Serpa Royo, a senior cultural analyst at consumer insights agency Canvas8, tells Fortune<\/em>. To them, \u201ccredit card perks are even better than credit, because it computes in the brain as free money.\u201d<\/p>\n Indeed, Gen Z is more engaged with the Amex benefits\u2014including travel, dining, and special-access events\u2014than older generations, Grosfield says. Amex users also have access to online education regarding budgeting, saving, retirement planning, owning a home, and building good credit. These factors all spell hope for a \u201clong runway for growth from millennial and Gen Z customers,\u201d Grosfield says.\u00a0<\/p>\n Bottom line is, though, that Gen Z is always looking for a deal. Indeed, the \u201cgrowing love for credit card perks isn\u2019t dissimilar to the explosion that we\u2019ve been witnessing lately, nor does it stand apart from the rise of\u201d buy-now-pay-later products, Royo says.\u00a0<\/p>\n \u201cPeople are looking for deals because they feel like they need more, want more\u2014and also want to appear like they have more\u2014while having, or feeling like they have, less,\u201d Royo says.<\/p>\n<\/div>\n\nNot just anyone has an Amex<\/h2>\n
Gen Z also loves a \u2018good life hack\u2019<\/h2>\n
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