American Express Statistics 2024: Key Insights on Market Share, Growth & Innovations
Barry Elad
Updated · Nov 27, 2024
American Express, commonly known as Amex, has carved out a reputation as one of the most recognized and respected financial service brands in the world. The company, founded in 1850, has a long history of innovation, from pioneering traveler’s checks to offering one of the most elite credit cards available today. Amex’s growth has been driven by its ability to remain agile in a highly competitive and ever-changing market. In this piece, we will dive into the key statistics that define American Express in 2024, shedding light on its market share, customer base, and competitive standing.
Editor’s Choice: Key Milestones of American Express
- $215 billion – American Express’s total purchase volume in the U.S. alone during 2023, reflecting a steady 8% year-over-year growth.
- Amex currently ranks #1 in customer satisfaction among major card issuers, according to the 2024 J.D. Power Credit Card Satisfaction Survey.
- In 2024, over 114 million American Express cards are in circulation worldwide, with 55% of them being active in the U.S.
- Amex continues to dominate the premium credit card market, holding more than 24% of the total market share for premium cards globally.
- $48.65 billion was recorded in revenue for the fiscal year 2023, marking a 12% increase from 2022.
- American Express is one of the few card issuers directly operating its network, processing $1.6 trillion in transactions globally.
- The brand’s Platinum Card® continues to lead with high net-worth individuals, accounting for a 30% increase in new cardholders since 2022.
Market Share and Competitive Position
- American Express holds 22% of the total credit card market share in the United States, positioning itself as the fourth-largest card issuer by purchase volume.
- Amex continues to lead in the premium card market, holding a 24% share globally, ahead of both Visa Infinite and Mastercard World Elite.
- In 2024, Amex competes closely with Visa, Mastercard, and Discover but remains distinct due to its closed-loop network model.
- The company’s global market share for corporate and travel-related spending hit 40% in 2023, an industry-leading figure.
- 65% of Amex cardholders use the card primarily for travel and entertainment expenses, which has helped the company maintain its leading position in these sectors.
- With a 12% increase in merchant acceptance globally in 2023, American Express is closing the gap with Visa and Mastercard, aiming to reach 99% parity in U.S. acceptance by the end of 2024.
- Amex’s reward programs—including Membership Rewards®—continue to be a major driver of customer loyalty, with 80% of users citing it as a reason for choosing Amex over other cards.
- The Amex Business Gold Card® has emerged as a top choice among small business owners, with 35% of new small business card applications in 2023 opting for this card.
American Express Statistics by Credit Cards and Cardholders
- In 2023, American Express had 64 million active cardholders in the U.S. alone, with a global total of 114 million cards in circulation.
- The Amex Platinum Card® experienced a 30% year-over-year increase in new sign-ups, driven by its enhanced rewards program.
- 42% of American Express’s total cardholder base is made up of Millennials and Gen Z, reflecting a growing shift in its demographic appeal.
- 83% of American Express cardholders are classified as affluent or high-net-worth individuals, contributing to the brand’s strong positioning in luxury spending categories.
- The average Amex cardholder uses their card for 50 transactions per month, compared to an industry average of 40 transactions for other issuers.
- American Express boasts a 98% customer retention rate among premium cardholders, a significant achievement in a competitive industry where retention averages around 85%.
| Cardholder Metric | Value |
| Platinum Card New Sign-ups | 30% |
| Millennials & Gen Z Cardholders | 42% |
| Affluent/High-Net-Worth Cardholders | 83% |
| Customer Retention Rate (Premium Cards) | 98% |
Average Customer Spending
- American Express cardholders spend, on average, $20,000 per year per card, significantly higher than the industry average of $8,000.
- In 2023, Amex Platinum and Centurion cardholders spent an average of $90,000 per year, mainly on travel, dining, and entertainment.
- 54% of Amex spending is attributed to travel and entertainment (T&E) categories, positioning the brand as the top choice for frequent travelers.
- Amex customers spent $350 billion on travel in 2023, a 20% increase from 2022, as international travel rebounded.
- $2,500 is the average amount spent per month by American Express Business Card holders, highlighting the card’s role in small business expenses.
- The cashback rewards earned by American Express cardholders amounted to $6.5 billion in 2023, with cashback cards growing in popularity.
- Amex Gold Card users spent 25% more on dining and groceries in 2023, as the brand expanded its rewards categories to meet consumer demand.
Financial Performance and Revenue Breakdown
- American Express reported total revenues of $48.65 billion for 2023, an impressive 12% year-over-year growth.
- Of this, 42% came from annual fees and transaction fees, reflecting the brand’s strong reliance on its premium cards.
- 58% of American Express’s revenue in 2023 came from interest on revolving credit, with $28 billion earned from cardholder balances.
- The Merchant Services segment generated $15.3 billion in 2023, with a 5% year-over-year growth, reflecting the increasing global acceptance of American Express.
- $8 billion was generated from global corporate spending, highlighting Amex’s dominance in the corporate and travel card sectors.
- Amex saw a 15% increase in international revenues in 2023, driven largely by higher spending in Asia and Europe as travel rebounded.
- American Express’s digital payments segment grew by 25% in 2023, contributing $4.2 billion to its total revenue, as more cardholders used mobile wallets and contactless payments.
Financial Position and Efficiency
- American Express reported a net income of $7.2 billion in 2023, marking a 9% increase from 2022.
- The company’s return on equity (ROE) reached 31% in 2023, well above the industry average of 18% for financial services companies.
- Amex maintained an operating margin of 25%, highlighting its efficiency in managing operational costs while increasing revenue.
- American Express’s debt-to-equity ratio stood at 2.5 in 2023, reflecting prudent management of liabilities.
- The company’s expense-to-revenue ratio was 68%, underscoring its ability to control costs while expanding globally.
- Amex’s efficiency ratio, a key indicator of financial health, remained stable at 64.7% in 2023, placing it among the most efficient in its sector.
- In 2023, American Express increased its cash reserves to $33 billion, preparing for potential market fluctuations and increased spending demands.
| Financial Metric | Value |
| Return on Equity (ROE) | 31% |
| Operating Margin | 25% |
| Expense-to-Revenue Ratio | 68% |
| Efficiency Ratio | 64.7% |
Profitability and Management Effectiveness
- American Express’s earnings per share (EPS) rose to $9.85 in 2023, compared to $8.60 in 2022, reflecting strong profitability.
- The gross profit margin remained high at 73%, showcasing the company’s ability to generate significant profit from its operations.
- Operating income grew to $12.5 billion in 2023, driven by higher transaction volumes and increased customer spending.
- Return on assets (ROA) was reported at 4.5%, maintaining a competitive edge compared to other financial institutions.
- American Express saw a 15% reduction in its delinquency rate for cardholders in 2023, reflecting improved credit risk management.
- $5.3 billion in dividends was paid to shareholders, reflecting the company’s commitment to returning value to investors.
- The Amex stock saw a 22% increase in value during 2023, outperforming the broader financial sector and boosting investor confidence.
Technological Innovations and Digital Solutions
- American Express invested $2.1 billion in 2023 in technology upgrades, focusing on improving its mobile platforms and AI-driven customer service.
- 80% of transactions in 2023 were completed via contactless payments, mobile wallets, or digital apps, signaling the rapid digital adoption by Amex users.
- Amex’s AI-powered fraud detection reduced fraudulent transactions by 35% in 2023, enhancing cardholder security.
- Amex Pay, the company’s proprietary digital wallet, saw 50 million users by the end of 2023, marking a 20% year-over-year growth.
- The American Express mobile app was downloaded 10 million times in 2023, with a 4.8-star rating in app stores, showcasing user satisfaction with its features.
- Blockchain technology was integrated into Amex’s rewards program in 2023, enabling cardholders to track and redeem points more securely and efficiently.
- Amex launched virtual credit cards for corporate clients, facilitating $500 million in payments in the first year of its release.
Recent Developments
- In 2023, American Express partnered with Delta Air Lines to launch a new co-branded card, which has attracted 300,000 new customers in the first six months.
- Amex has expanded its green energy investments, committing $500 million to sustainable initiatives by 2024 as part of its broader environmental responsibility goals.
- Amex Ventures increased its fintech investments by 15% in 2023, backing 15 new startups in the digital payment space.
- American Express has begun a partnership with PayPal, allowing Amex cardholders to redeem Membership Rewards points on PayPal purchases, boosting digital spending.
- In 2023, Amex introduced a Buy Now, Pay Later (BNPL) feature for all its U.S. cardholders, processing $1.8 billion in BNPL transactions by the end of the year.
- Amex Platinum® underwent a major overhaul, adding five new airport lounge partnerships and expanding rewards for travel-related expenses.
- The company’s corporate card division saw a 12% increase in new client acquisitions, driven by a post-pandemic resurgence in business travel.
Conclusion
American Express continues to lead the financial services industry through its commitment to innovation, customer satisfaction, and strategic growth. With its robust financial performance, enhanced digital solutions, and focus on sustainability, Amex remains a trusted name among consumers and businesses alike. As 2024 progresses, American Express is well-positioned to maintain its market leadership, while continuing to push the boundaries of what’s possible in financial services.
Sources
Barry Elad
Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.
