Analysis of American Express
The Product Design Club
CFI, IIT Madras
November 29, 2024
1 Core Product and Unique Features
American Express is a global financial services company specializing in credit cards, charge
cards, travel services and financial management tools, with a focus on premium and exclusive
benefits.
• Non-Proprietary Cards: American Express cards are issued by prominent banks
like Citibank, First National Bank of Omaha, and US Bancorp, expanding accessibility
and reach.
• Specialized Cards for Businesses: A corporate card simplifies expense manage-
ment, improves cash flow, offers detailed reporting, and provides perks like rewards
and fraud protection. AmEx offers Corporate Meeting Cards, Corporate Purchasing
Cards, for office expenses, and even a business travel account.
• Membership Rewards Program: Members can earn points on most purchases, and
use the points earned for e-Vouchers, travel, shopping, or even to cover recent Card
charges with no expiration dates. AmEx also offers premium travel benefits, such as
airport lounge access and travel insurance.
• No pre-set limits on charge cards: No preset spending limits provide flexibility
by allowing purchases beyond traditional credit limits, based on your spending habits,
credit history, and financial capacity. This is especially useful for managing dynamic
personal or business expenses.
1
Table 1: Competitive Analysis
Feature American Express Competitors
Market Share 8.2% of the global credit card Visa - 37% Mastercard - 32%
market
Unique Selling Exceptional Rewards and Global Reach(AmEx has limited
Point Benefits, Premium Service, Strong global network), Security, Diverse
Brand Image Product Offering(Credit, Debit
and Prepaid cards)
Key Competitors Visa, Mastercard, Chase, Citi, Other Bank Holding Companies
Discover
• Exceptional Fraud Protection and Customer Service: AmEx provides 24/7
support, personalized assistance and quick responses to customer needs.
2 Target Market Audience
American Express targets high income individuals, frequent travelers and business owners.
Traditionally the target audience are in their 40s and above, positioning itself as a premium
brand, however AmEx is focusing on expanding its customer base to include GenZ and the
Millennials(ages 18-40).
3 TAM and SAM
The Total Addressable Market(TAM) for American Express includes all individuals
with a stable income, business owners and frequent travelers. It also covers sectors like
retail, hospitality, and e-commerce, that rely heavily on payment processing solutions.
The Serviceable Addressable Market(SAM) covers the individuals with medium to
high income who would be willing to take membership to access the perks AmEx has to
offer, and are within the geographical constraints, i.e., wherever AmEx is operational and
has a strong presence.
4 Data Analysis (Metrics)
• Market Share: 8.2% of the global credit market.
• Cardholder Base: Over 114 million cards are in force worldwide.
• Operations: AmEx operates in over 130 countries worldwide, and its cards are accepted
at 99% of U.S. merchants.
2
5 Brainstorming New Product Ideas
• A potential new product that could be launched by AmEx, is Sustainability Cards,
that return rewards for eco-conscious purchases, such as eco-friendly products and
public transport usage, that would appeal to environmentally-conscious customers and
help American Express achieve its sustainability goals.
• Wellness Cards could be introduced that provide access to top tier healthcare providers,
rewarding members with exclusive discounts and fitness memberships.
• A Finance Education Platform could be introduced to educate Gen Z and Millen-
nial members about financial management, providing personalized insights and advice
to members, by integrating AI.
6 Company Culture and Values
• Reliability, Consistency and Integrity
• Adaptability and Innovation
• Teamwork and Collaboration
• Diversity and Inclusion
• Accountability and Ownership
• Community-Oriented Service
• Commitment to Sustainability
7 Past Projects
• Contactless payment integration such as tap and pay credit cards, mobile wallets,
platforms such as Google Pay and Apple Pay etc.
• Membership Rewards Program providing loyalty rewards by awarding members
points and allowing them to convert those points to vouchers for them to redeem.
• AmEx Open was a program designed to help Small and Medium Businesses by pro-
viding financial tools, expense management tools, access to resources and working
capital. It has been retired as a standalone platform now, however its features has
been integrated into AmEx’s broader business services.
• Digital Transformation Initiatives including AmEx’s mobile app and other online
platforms.
3
8 Future Projects
• AI-powered financial services such as fraud detection, credit risk assessment and
personalized customer insights.
• Sustainability in payments and Green Financing Options
• Blockchain and Cryptocurrency Integration
9 ESG Reports Analysis
American Express is committed to provide responsible and secure financial products, sup-
porting small businesses, and promoting a diverse and inclusive workforce. Their ESG Goals
include:
• To reach net-zero greenhouse gas emissions across the value chain by 2050.
• Partnering with 75% of rewards and co-brand partners on emission targets by 2028.
• Reducing Scope 1, 2, and 3 emissions by 90% from 2019 levels by 2050.
• To support 750,000 underrepresented-owned businesses with access to capital and
resources from late 2020 through 2025.
10 Climate Action Initiatives
• A carbon footprint dashboard that allows members to track their estimated carbon
emissions, specialized for corporate clients, by tracking their spend on air travel, ground
travel, restaurants and retail.
• A Carbon Offset Referral suite for U.S. Corporate clients to help corporate
clients identify and partner with firms that work towards a more sustainable future.
• Cards from reclaimed plastic collected in beaches and coastal communities. Card
members can also return their used cards for recycling.
11 Marketing Strategy
AmEx combines traditional advertisements with innovative digital campaigns focusing on
exclusive benefits, superior customer service, and rewarding experiences. Digital Market-
ing is a big part of AmEx’s marketing strategy, including Social Media Marketing, SEO,
Influencer Marketing and a Mobile App.
4
12 References
• https://www.americanexpress.com/en-us/company/?inav=us footer about about american express
• https://en.wikipedia.org/wiki/American Express
• https://iide.co/case-studies/marketing-strategy-of-american-express-bank/
• https://esgnews.com/american-express-announces-new-initiatives-to-advance-climate-action-
and-support-low-carbon-communities/
