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The long-term rivalry between the country’s top premium credit cards is likely to heat up again.
JPMorgan Chase announced last week that a Sapphire Reserve refresh (a travel and meal reward card that went viral when it arrived in 2016) is imminent.
In response, American Express said on Monday that there have been “major” changes to consumer and business platinum cards later this year. While details are lacking, the New York-based credit card company said its renewal will be its biggest investment in card renewals.
“We’re going to double what we know based on the data our card members love,” Amex president of U.S. consumer services, Howard Grossfield, said in an interview. “But more importantly, it brings a lot of new and exciting benefits and value that are far beyond the annual fee.”
According to Grosfield, the new platinum card will be released in the fall, enhancing its lounge, dining and events benefits.
American Express opened up premium credit card space decades ago, using cards bundled with perks at airlines and hotels that allow access to a network of high-end airport lounges. However, JPMorgan shook the industry in 2016, igniting tough competition among card issuers, and announced a gorgeous sign-on bonus and other incentives for sapphire cards.
The expectations among industry experts are that the companies could raise annual fees, similar to the patterns of recent updates, with the list of travel, meals and concert experience perks.
The Platinum Card costs $695 an annual fee, while the Sapphire costs $550.
On Reddit and other forums, card users have distributed rumors that JPMorgan is hiking the annual fee for Sapphire products to $795. A JP Morgan spokesman declined to comment.
