The Banks Selling Premium CardsNarrow moat

American Express (AXP) — moat facet

The banks fighting American Express for premium cardholders compete with rewards and lounges, and Amex answers with the same, at a rising price.

The rivals that fight American Express for its best customers are not networks but banks. Amex says it faces "intense competition in the premium space and for cobrand relationships"1, including competition for "lounge space in U.S. and global hub airports" and for "dining experiences"2.

New accounts, Q2 2026 (%)75%Fee-paying share of new accounts65%Millennial and Gen Z shareof new consumer accounts70%Same, new non-USconsumer PlatinumAmerican Express Q2 2026 earnings call; call summary for the fee-paying share
Amex is winning the new premium customer, for now.

These banks issue premium cards on the open networks, and they compete on rewards and benefits rather than on network. A cardholder deciding between a premium Amex card and a bank's premium card compares points, credits and lounges, not acceptance economics.

The contest is visible in Amex's own cost lines. Card Member services expense, which carries most of the premium benefits, rose from $1,993 million in 2021 to $6,057 million in 202534, and by 50% in the second quarter of 20265. Rewards rose from $11,007 million to $18,409 million67. A company without a rival for its customers would not need to raise those lines faster than its revenue.

Amex has two advantages in this fight. It keeps the whole merchant fee, where a bank shares its interchange with the network. And it has built its own physical assets, such as the Centurion Lounges, of which it opened the 31st at the end of 20258.

So far it is winning the customers it wants. On the second-quarter 2026 call the company said about 75% of new accounts were fee-paying products9, and its release said the Platinum portfolio was "the fastest growing in our U.S. Consumer business"10.

The fight is also fought with partnerships. American Express introduced new partnerships in the second quarter of 2026, including a global partnership with ALL Accor, the booking and loyalty platform for Accor's 45 brands11. Partnerships of this kind add benefits without adding a lounge, and they are a cheaper way to keep the premium bundle ahead of rival cards.

The Rewards Bill pages carry the cost side of this rivalry. The test here is the customer side: the fee-paying share of new accounts, put at about 75% on the call12. If it fell toward half while benefits kept rising, the banks would be winning the premium customer on value and Amex would be paying more for the ones it kept.

Moat trajectory: Narrowing

Card Member services +50% in Q2 2026; about 75% of new accounts fee-paying.

The number that tests this moat
Third-party estimate
Fee-paying share of new accounts, latest quarter
About 75% (Q2 2026, call summary)

Whether Amex is winning the premium customer; toward half, with benefits still rising, the banks would be winning on value.

Source: American Express Q2 2026 call transcript ↗
References
  1. ReportedAmex says it faces "intense competition in the premium space and for cobrand relationships", including competition for "lounge space in U.S. and global hub airports" and for "dining experiences".
    American Express Form 10-K for fiscal 2025 - Item 1A risk factors, competition and regulation. — FY2025 · publ. 6 February 2026 · source ↗
  2. ReportedAmex says it faces "intense competition in the premium space and for cobrand relationships", including competition for "lounge space in U.S. and global hub airports" and for "dining experiences".
    American Express Form 10-K for fiscal 2025 - Item 1A risk factors, competition and regulation. — FY2025 · publ. 6 February 2026 · source ↗
  3. ReportedCard Member services expense, which carries most of the premium benefits, rose from $1,993 million in 2021 to $6,057 million in 2025, and by 50% in the second quarter of 2026.
    American Express Form 10-K for fiscal 2023 - income statements for 2021-2023 on the current presentation, segment results for 2022, discount revenue as a share of billed business. — FY2023 · publ. February 2024 · source ↗
  4. ReportedCard Member services expense, which carries most of the premium benefits, rose from $1,993 million in 2021 to $6,057 million in 2025, and by 50% in the second quarter of 2026.
    American Express Form 10-K for fiscal 2025 - Card Member rewards, Membership Rewards liability, business development and Card Member services. — FY2025 · publ. 6 February 2026 · source ↗
  5. ReportedCard Member services expense, which carries most of the premium benefits, rose from $1,993 million in 2021 to $6,057 million in 2025, and by 50% in the second quarter of 2026.
    American Express second-quarter 2026 statistical supplement, Form 8-K exhibit 99.2 - segment results, card metrics, capital and credit - consolidated results, card metrics, capital and credit. — Q2 2026 · publ. 24 July 2026 · source ↗
  6. ReportedRewards rose from $11,007 million to $18,409 million.
    American Express Form 10-K for fiscal 2023 - income statements for 2021-2023 on the current presentation, segment results for 2022, discount revenue as a share of billed business. — FY2023 · publ. February 2024 · source ↗
  7. ReportedRewards rose from $11,007 million to $18,409 million.
    American Express Form 10-K for fiscal 2025 - Card Member rewards, Membership Rewards liability, business development and Card Member services. — FY2025 · publ. 6 February 2026 · source ↗
  8. ReportedAnd it has built its own physical assets, such as the Centurion Lounges, of which it opened the 31st at the end of 2025.
    American Express fourth-quarter and full-year 2025 earnings release, Form 8-K exhibit 99.1 - 2026 guidance and the dividend increase. — Q4 2025 · publ. 30 January 2026 · source ↗
  9. Third-party estimateOn the second-quarter 2026 call the company said about 75% of new accounts were fee-paying products, and its release said the Platinum portfolio was "the fastest growing in our U.S. Consumer business".
    American Express second-quarter 2026 earnings call transcript (third-party transcript). — Q2 2026 · publ. 24 July 2026 · source ↗
  10. ReportedOn the second-quarter 2026 call the company said about 75% of new accounts were fee-paying products, and its release said the Platinum portfolio was "the fastest growing in our U.S. Consumer business".
    American Express second-quarter 2026 earnings release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 24 July 2026 · source ↗
  11. ReportedAmerican Express introduced new partnerships in the second quarter of 2026, including a global partnership with ALL Accor, the booking and loyalty platform for Accor's 45 brands.
    American Express second-quarter 2026 earnings release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 24 July 2026 · source ↗
  12. Third-party estimateThe test here is the customer side: the fee-paying share of new accounts, put at about 75% on the call.
    American Express second-quarter 2026 earnings call transcript (third-party transcript). — Q2 2026 · publ. 24 July 2026 · source ↗
Sources
Generated September 28, 2026