American Express is taking another step to steal share from JPMorgan Chase’s Sapphire Reserve card by gearing up to raise the points it gives consumers who signed up for its Platinum card.
According to a report in The Wall Street Journal, in the next few days American Express is expected to announce its raising the points bonus to 60,000 from 40,000. But in order to get the extra points, card users have to spend $5,000 during the first three months the card is activated, higher than the $3,000 requirement, reported the WSJ, citing a person familiar with the matter.
“We’ve always had competitive sign-up bonuses combined with a range of premium benefits and services,” an American Express spokeswoman told the WSJ. The new point structure could be rolled out today (March 29) when new benefits that were announced earlier in March take effect, noted the WSJ.
If American Express moves to do that, it would be a few weeks after JPMorgan Chase ended its 100,000 points offer for Sapphire Reserve customers and reduce it to 50,000 points, noted the report. Sapphire Reserve cardholders have to spend $4,000 in the first three months after receiving the card to get the points.
While all of the credit card companies battle it out for market share, the fight between American Express and JPMorgan Chase appears to be pronounced since both offer luxury reward cards that come with high fees but big rewards. The cards are geared toward big spenders, which is why the battle between the two is so fierce. Doug Buckminster, president of Amex’s global consumer services group, referred to the Chase Sapphire Reserve launch during a presentation this month as “a full frontal assault” on the Platinum card. Since October, American Express has been boosting rewards, and analysts see it as an attempt to prevent market share losses to JPMorgan Chase, reported the WSJ.