Amex Taps Millennial and Gen Z Spending Power to Drive Q3 Gains

American Express recently released its financial results for the third quarter, revealing in a call with analysts that an increase in credit card spending by millennials and Gen Zers helped propel the company to a strong quarter.

Millennial and Gen Z cardholders now account for 36% of the total spend on Amex cards, putting them on par with the amount of spending the company sees from members of Gen X, according to a new report from PYMNTS.

The company’s findings indicate to other credit card issuers that the right mix of products and benefits can still entice younger cardholders to ramp up their use of credit cards in an environment where many consumers have concerns about inflation and the labor market.

In addition to economic threats, credit card issuers face challenges from companies that offer other forms of payment to consumers. 

Millennial and Gen Z cardholders now make up the same share of spending on American Express cards, 36%, as the company’s Gen X cardholders.

Buy now, pay later products continue to win over new supporters in the U.S. Monthly spending on BNPL programs grew more than 20% from June 2024 to June 2025, and experts predict that 90 million people in the U.S. will make a payment with a BNPL product before the year comes to a close.

And leading the way for BNPL use are millennials and Gen Z consumers, according to a recent report revealing that more than half of BNPL users are under 36 years old.

Credit card issuers looking to learn the secrets of American Express’s success with millennials and Gen Z members should consider how the company differentiates itself from its competition. 

American Express offers products and services that appeal to consumers who value luxury and exclusivity. For example, the company recently held a series of events in conjunction with Dua Lipa concerts in New York, giving its customers the opportunity to enter the soirees early and obtain exclusive giveaway items.

American Express cardholders also had the opportunity to access luxury hotel packages in conjunction with a weeklong regatta in Australia this summer.

Courting customers who value high-end experiences may allow American Express to dodge drops in consumer spending that can haunt other credit card issuers.

“Our card base is not representative of what’s going on across the United States,” Steve Squeri, American Express’s CEO, said recently, according to Payments Dive. “We have a small percentage of the cards, but our cardholders are much more premium.”

Squeri’s comments prove that, for some issuers, it’s not how many customers they can bring on board that matters to them as much as which customers they can attract.

The company upgraded its Platinum card in the U.S. for consumers earlier this year, adding benefits that provide cardholders with statement credits when they use the card at select hotels and restaurants.

The exclusive features American Express delivers to cardholders can cause its cards to stay top of mind for millennials and Gen Z consumers who value products with benefits that suit their lifestyle.

Christophe Le Caillec, Chief Financial Officer at American Express, said on the call with analysts that the enhancement of the company’s Platinum products has also drawn customers with better credit backgrounds to American Express.

“The credit profiles of consumer applicants following the refresh are even better than what we were seeing before, with the average FICO score up 15 points,” Le Caillec shared.