The competitive landscape of premium credit cards is set to intensify as major players in the market prepare to roll out significant updates to their offerings.
Last week, JPMorgan Chase revealed that enhancements to its Sapphire Reserve card—known for its rewards in travel and dining—are forthcoming. This card skyrocketed to popularity upon its debut in 2016 and is now slated for a refresh that is described as imminent.
In a rapid response, American Express announced on Monday that it is planning “major” updates to both its consumer and business Platinum cards, scheduled for later this year. Although specific details remain sparse, the New York-based financial services giant emphasized that this initiative represents the most substantial investment it has made in a card refresh to date.
Howard Grosfield, Amex’s President of U.S. Consumer Services, stated in an interview, “We are going to double down on the things we know based on the data that our card members love. But more importantly, we’ll bring a whole bunch of new and exciting benefits and value that will far, far, far exceed the annual fee.”
The revamped Platinum card is anticipated to debut in the fall, boasting improved perks related to lounges, dining, and exclusive events, according to Grosfield.
Historically, American Express has been at the forefront of the premium credit card sector, offering perks that include travel benefits and access to high-end airport lounges. However, the landscape shifted in 2016 when JPMorgan introduced its Sapphire card, creating heightened competition with generous sign-up bonuses and other offerings.
Industry analysts predict that both companies will seek to expand their range of perks in categories like travel, dining, and live events, potentially increasing their annual fees in line with past trends.
At present, the annual fee for the Platinum card is set at $695, whereas the Sapphire card charges a fee of $550.
Online discussions on platforms such as Reddit have surfaced rumors suggesting that JPMorgan may raise the annual fee for the Sapphire product to $795. A representative for JPMorgan declined to provide comments regarding these speculations.
