Jamie Wilde
2 min read
In This Article:
Aaron Burr vs. Alexander Hamilton, Optimus Prime vs. Megatron and … AmEx Platinum vs. Chase Sapphire Reserve. The two luxury credit card rivals are going tit-for-tat, with Chase and American Express each announcing overhauls of their cards’ perks and appearances.
American Express said yesterday it’ll roll out “major updates” to its Platinum credit cards this fall, days after JPMorgan Chase announced a refresh to its Sapphire Reserve credit card set to roll out this summer.
The two cards both have steep annual fees that put them in direct competition for a spot in consumers’ wallets, and the upcoming updates could shift which one gets thrown down the most at group dinners.
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American Express launched its Platinum card in 1984, trailblazing the premium, points-based credit card market. Chase crashed the party in 2016 with the Sapphire Reserve card, which went viral for its 100,000-point signup bonus.
Last year, Chase was the top credit card issuer, according to Nilson, with $1.3 trillion worth of purchase volume. American Express came in second with purchases totaling $1.2 trillion. Citi, Capital One and Bank of America were distant runners-up.
Chase and American Express are jostling for the top spot while offering similar, travel-focused perks. One place the wallet wars are playing out is at the airport:
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American Express has dozens of “Centurion” lounges around the world, but as complaints about overcrowding have cropped up, jetsetters have sought alternatives for their pre-flight beer and nap.
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Chase opened its first Sapphire Reserve lounge two years ago and now has eight clubs up and running. Capital One, whose Venture X Rewards card competes for the same customers, has opened five lounges since 2021.
Maxed Out: Americans have about four credit cards on average, per Experian, and credit card debt is still near record highs after cooling off slightly in the first quarter (typical post-holiday pullback). But wallet space is limited when fees are $500+ per card. The Platinum card costs $695 annually, while the Sapphire Reserve rings in at $550. When issuers roll out their card refreshes, it’s possible they’ll raise prices again. Figuring out how much people are willing to pay for which perks could help one card get a swipe above the competition.
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