Amex Spending Surges as Firm Invests to Retain Premium Customers

American Express is raising its game in the high-stakes race for premium cardholders, posting a sharp increase in expenses for the second quarter of 2025. Investments in technology, security, and customer rewards are key to keeping affluent users engaged and spending.

Competition is fierce as rivals update premium products and launch new options targeting the same valuable customers. Amex is responding with elevated spending on risk management and exclusive perks to set itself apart in a crowded field.

Record Spending Brings Higher Costs

Amex reported consolidated expenses reaching $12.9 billion in the latest quarter, up 14 percent from last year and outpacing expectations. The firm attributed much of the jump to risk-management technology and customer engagement programs, pointing to ongoing investments in keeping its brand attractive to high-spending users.

Despite the rising expenses, the company delivered strong results. Card member spending hit an all-time high, with billed business totaling $416.3 billion on a currency-adjusted basis, beating analyst projections. American Express also saw revenues grow 9.3 percent to $17.9 billion, supported by travel rebound and increased card usage.

Did you know?
American Express traces its roots back to 1850, originally launching as an express mail business before evolving into the financial services giant it is today.

Customer Perks and Competitive Moves

Matching competitors is crucial. JPMorgan Chase has revamped its Sapphire Reserve card, and Citigroup will soon launch its Strata Elite card, each trying to lure premium clients.

Amex, meanwhile, plans updates to its Platinum card later this year. CEO Steve Squeri says the battle for cardholder loyalty is driving innovation and value.

The firm’s engagement strategies extend to exclusive travel benefits and creative lounge concepts. Squeri highlighted upcoming expansions to airport lounges, such as the Sidecar space in Las Vegas, which reflects Amex's efforts to serve a growing number of top-tier travelers.

Managing Risk and Navigating Uncertainty

Amex’s spending surge isn’t without risks. Consolidated provisions for credit losses totaled $1.4 billion, up modestly from last year. The higher reserve builds reflect increased total loans and receivables, though net loss outcomes remained better than some competitors. The firm maintains that overall credit quality, especially among affluent and younger demographics, remains strong.

Squeri downplayed concerns about the looming threat of stablecoin payments disrupting traditional networks but acknowledged the company’s interest in exploring new digital payment options to stay ahead of industry shifts.

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Growth Outlook Remains Solid

American Express reaffirmed its guidance for full-year revenue growth of 8 to 10 percent and earnings between $15 and $15.50 per share. While the stock market reaction was muted after the report, Squeri expressed confidence that Amex’s focus on technology, rewards, and risk management will pay off as consumer demand remains robust.

Amex also prioritizes targeting younger demographics. The company noted millennial and Gen Z customers have lower past-due rates than their older peers, signaling future strength in its expanding customer base.

Amex believes blending advanced tech with attractive perks will keep cardholders coming back even as economic signals remain mixed.

A Premium Future Takes Shape

Amex expects the squeeze of rising expenses to continue as it doubles down on its strategy of high-value rewards and innovation. The real test will be maintaining profitability while fending off aggressive competitors and satisfying customers seeking more from their cards.

Whether amping up spending proves sustainable or prompts further changes across the industry, all eyes will be on Amex's next moves in the race for premium loyalty.