American Express Statistics

American Express has maintained a notable presence in Australia's financial services landscape since 1954, starting with the sale of travellers’ cheques. Today, the company offers a wide array of credit and charge cards, targeting both personal and business customers.

With a head office in Sydney and over 1,390 employees across Australia and New Zealand, Amex has established strong ties with the local market, especially within the premium financial product industry.

Market share

American Express remains a major player in the Australian credit card market, competing with Visa and Mastercard. Its strong rewards programs keep personal and business customers loyal, but it faces stiff competition in the debit card sector, which is dominated by Australia's big four banks.

Share of credit card spending in 2023, American Express and Diners Club cards accounted for 20.5% of Australia’s credit card spending by value. (Statista)

American Express competes against Visa and Mastercard but distinguishes itself with premium cards offering rich rewards and benefits, with annual fees ranging from $0 to $1,450 for personal cards.

Amex controls a dominant position for corporate cards and is also popular for its business credit cards due to its expense management tools and corporate card offerings. (Statista)

Consumer insights

Amex cardholders in Australia are typically affluent and loyal to the brand due to its premium offerings:

• Amex is used for high-ticket purchases, particularly in the travel, dining, and luxury retail sectors. 20.5% of all credit card spending in Australia is done with Amex cards, highlighting its popularity for larger transactions.
• Amex is seen as a premium brand, associated with exclusivity, high-quality customer service, and generous rewards.
• High satisfaction rates are attributed to 24/7 customer support, travel perks, and purchase protection. While high annual fees deter some users, many feel the benefits outweigh the costs.
• Amex’s mobile app allows customers to check balances, pay bills, and track spending, which now accounts for 98% of bank interactions in Australia. (ABA)

History

• American Express entered the Australian market in 1954, initially selling traveller's cheques before expanding into credit cards and financial services. (Wikipedia)
• Over the years, it has become known for its focus on high-end credit cards and affluent customers, providing exclusive rewards and travel perks.
• Its primary office is in Sydney, with smaller branches in major cities.

Scandals

• Recent breaches of the design and distribution rules led to an $8 million fine, highlighting the importance of adhering to local financial regulations. (ASIC)

Employees

• Amex employs over 1,390 people in Australia, contributing to job creation in various sectors, from customer service to management roles. (IbisWorld)

Financials

• With travel spending rebounding post-COVID, Amex’s travel services revenue has seen a notable boost.
• The company has managed to keep bad debts low thanks to advanced approval systems and digital banking services that have also reduced operating costs.

Consumer demographics

Age groups

• 25-34: Tend to choose Amex cards for travel rewards and lifestyle perks.
• 35-54: Frequently use Amex for business expenses and high-value purchases.
• 55+: A smaller but loyal group focused on service and fraud protection.

Income brackets

• High-income earners: A key target, many earning over $100,000 per year.
• Upper-middle-class: Individuals earning between $70,000-$100,000 prefer value-driven cards with lower fees.

Regional usage

• Highest usage: In urban centres like Sydney and Melbourne.
• Lower usage: In rural areas, where Amex acceptance is lower due to higher merchant fees.

Products and services

Amex offers a wide range of financial products tailored to various customer needs:

Credit cards

American Express credit cards offer reward programs for Qantas Points, Velocity Points, and Membership Rewards with popular cards amongst Australians include:

• Qantas American Express Ultimate Card
• American Express Explorer Credit Card
• American Express Platinum Edge Credit Card

These often feature perks like complimentary travel insurance, airport lounge access, and bonus points.

Charge cards

Charge cards require full repayment each month and offer high earning rates on rewards. Examples include:

• American Express Platinum Card
• American Express Gold Card

Business cards

Amex provides tools for expense management and corporate cards aimed at businesses with the American Express Business Card being a popular card choice.

Travel services

Amex offers travel-related services added to their card features, including travel booking, insurance, lounge access, and foreign exchange services.

The statistics and research have been updated per the last updated date for freshness, accuracy, and comprehensiveness.