What's Happening?
American Express has updated the welcome offer for its consumer Platinum Card, increasing the minimum spending requirement by 50%. Previously, cardholders needed to spend $8,000 within six months to earn the welcome points, but this has now been raised to $12,000. Despite the increase in spending requirement, the number of points offered remains unchanged. The card continues to offer various perks, including airline incidental fee credits, Uber credits, and hotel credits, among others. The annual fee for the card is $895, and it offers up to 175,000 points after meeting the spending requirement.
Why It's Important?
The increase in the spending requirement for the American Express Platinum Card could impact consumer decisions, particularly those who were considering
the card for its perks and rewards. The unchanged points offer, despite the higher spending threshold, may deter potential applicants who find the new requirement too steep. This move could affect American Express's competitive positioning against other premium cards like the Citi Strata Elite and Chase Sapphire Reserve, which have lower spending requirements. The decision reflects a strategic shift by American Express to target high-spending consumers who can maximize the card's benefits.
What's Next?
Potential applicants may reassess the value of the American Express Platinum Card in light of the increased spending requirement. Existing cardholders might continue to leverage the card's perks, but new applicants could be more selective, possibly waiting for more favorable offers. American Express may monitor the market's response to this change and adjust its strategy accordingly, potentially revisiting the points offer or spending requirement based on consumer feedback and competitive pressures.
