The credit card wars are heating up

On Monday, American Express teased its “largest investment ever in a Card refresh” for its Platinum Card — a credit card that has transcended the simple swipe-and-sign, becoming something of a status symbol for young users willing to shell out $695 a year for travel and dining perks. One day later, JPMorgan Chase announced a revamp of its Sapphire Reserve, its rival lifestyle card, along with a whopping 45% hike in its annual fee to $795.

Chasing hard

The rivalry dates back to 2016, when Chase first launched the Sapphire card at $450, taking aim at Amex’s grip on the high-end market. Around that time, Amex began reversing its decade-long push into the mass market — where it had been launching no-fee cards to attract budget-conscious consumers — and refocused on the premium segment it had carved out as far back as the 1960s.

Since then, the 174-year-old company has leaned hard into its premium pricing: over the past decade, its average fee per card has more than doubled to an all-time high of $103. Cardholders seem unbothered by the expense: Amex added another 13 million new accounts last year, and cards-in-force hit a record 147 million.

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