American Express AXP, +0.06% is overhauling its popular Gold Card, seemingly in a bid to win over more millennial consumers.
The credit-card issuer announced a slate of changes Thursday to the popular premium card, which it first rolled out in 1966. The card’s annual fee will increase to $250 from $195, and card holders will no longer earn rewards on purchases made at gas stations in the U.S. The Gold Card’s rewards program will now focus exclusively on food and travel.
The card will now offer:
4X points at U.S. restaurants (double the previous earn). 4X points at U.S. supermarkets for the first $25,000 in purchases in this category each year (also double the previous offer). 3X points on flights booked directly with airlines or through American Express’ travel portal (same as the previous allotment). A $100 airline fee credit. A $120 dining credit (up to $10 per month) that can be used across yet-to-be-announced four restaurant chains.Additionally, the Gold Card will feature a new sign-up bonus for new card members. Consumers who sign up through Jan. 9 will receive an addition 25,000 rewards points when they spend $2,000 in the first three months. American Express is also providing $20 back in statement credit on up to $100 in restaurant-related expenses during that three-month introductory period.
“This is about creating a product for those consumers who don’t travel as much as our Platinum customers do, but are really into eating out or cooking at home,” said Rachel Stocks, executive vice president of global premium products and benefits at American Express.
Existing Gold Card members will be grand-fathered into the program and charged the higher annual fee as their memberships come up for renewal.
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American Express is courting the millennial demographic
The changes come at a time when other issuers are releasing cards designed for millennials who are interested in dining out and travel. Capital One COF, +1.26% announced in August that it will begin offering 4% back on dining and entertainment expenses on its Savor card, and the Uber Visa V, -0.20% Card also provides 4% cash back on purchases at restaurants and bars. Wells Fargo WFC, +1.00% recently rolled out a new travel credit card offer 3x points on dining this summer.
The latest updates American Express announced for the Gold Card also appear to be an effort to make it more competitive with Chase’s JPM, +0.94% Sapphire credit cards, said Matt Schulz, chief industry analyst at CompareCards.com TREE, +1.74%
“Credit card issuers are very focused on appealing to affluent millennials right now,” Schulz said. “AmEx for a long time was the king of the hill when it comes to upscale credit cards. But that crown has been taken by Chase over the last couple of years, and that space is very competitive.”
Beyond the new rewards, American Express will also begin issuing metal credit cards to these customers, including a limited-edition rose gold option.
American Express has made other announcements in recent months to underscore its attempts to cater better to a millennial demographic. Earlier this year, the company released a new cashback card with no annual fee and another new card with travel-oriented bonuses including 6x points at certain hotels.
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