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American Express Co.’s new campaigns to build more intimate relationships with restaurants and refresh its top-end Platinum card are starting to show signs of paying off, the card company said early Friday. The initiatives come as the company reported revenue growth of 11% year-over-year for the September quarter.
The effort to enhance the high-end Platinum Card, which first entered the market in 1984, began three weeks ago and includes higher statement credits, such as a $400 dining credit on Resy on-platform-shift4-unveils-pay-at-table-system/, the company’s reservations platform. Now, some 500,000 requests for the card have flowed in since the refresh began, chief executive Steve Squeri reported in a conference call with equity analysts Friday.
“We’re very happy with the upgrades, and we’re three weeks in here,” Squeri said. “Much of the [Platinum card campaign] is explaining the product. You come to the conclusion this is a product you really want to keep.” The refreshed card, he added, “will drive more business to our merchants.” New enhancements on the card also include annual credits with Lululemon, Uber, and various hotels. The Platinum Card accounts for $530 billion in annual billing, AmEx reported Friday.
Now, expectations for the refreshed premium card are high. “We did this with eyes wide open,” said chief financial officer Christophe Le Caillec. “It’s a sizable investment for us.” Added Squeri: “We do all this stuff with eyes wide open. Our aspiration is still 10% revenue growth.”
The quarter also included an integration for Resy data with Boston-based Toast Inc., a provider of payments technology for restaurants. With the Toast integration, servers at restaurants using Toast will have access to Resy’s reservation information. Restaurants, which represent AmEx’s strongest travel-and-entertainment category, saw a 9% rise in payment volume in the quarter, Le Caillec reported during the call.
Overall, U.S. consumer spending rose 9% for AmEx in the quarter, a trend the company sees as sturdy. “We’re not expecting a deceleration,” Squeri noted. The company does not break out dollar figures for spending at restaurants or other sectors of its business.
Total revenue for the quarter reached $18.4 billion, beating that 10% target. Of that figure, discount revenue reached $9.4 billion, up 7%, propelled by billed business. Net income for the quarter rose 16% to $2.9 billion.
