Amex uses Olivia Rodrigo concerts to reach Gen Zers in Europe

But as the global credit card giant continues to make inroads among reluctant retailers, it is betting on attracting young customers with the help of the world’s biggest pop stars.

Amex Chief Operating Officer Elizabeth Rutledge said wealth that Generation Z and millennials now purchased 68% of its cards globally.

Those younger buyers are drawn to lifestyle perks like entertainment, dining and travel. Amex is now responding to these needs with a strong focus on the entertainment sector.

“Experience the thrill of a Formula 1 race or have access to some exclusive dining experiences,” said Rutledge.

In the UK, Amex targeted young Brits with partnerships at London festivals such as British Summer Time and All Points East. Cardholders can get early access to tickets and receive benefits at the venue.

The group collaborated with Gen Z pop superstar Olivia Rodrigo last year for their second hit album, Courageand a corresponding global sales tour.

Amex hosted a special event in Berlin after Rodrigo’s concert there, where card members and other fans enjoyed local artists and DJs at an after party. Fans also had access to dedicated checkout lines for limited edition merchandise.

The fact that nearly 60 percent of Gen Zers describe themselves as “super fans” of their favorite artists, Rutledge says, adds to the appeal of these perks.

In addition, Amex offers cardmembers the chance to participate in exclusive dining events, including new restaurant openings, including Excellent British menu Winner Dan McGeorge’s new Vetch spot in Liverpool.

The hope is that attracting a younger audience to Amex means they’ll stick with the card as their incomes rise in their later years.

“They really represent a strong potential lifetime value for us, as we can be with them through all their different lifecycles as their needs evolve and change.”

The Amex playbook is the same in the US, where the group realized the universal demand for experiences by Gen Z and millennials and began to adjust its rewards.

It marks a pivot from a historical focus on points-based rewards and other benefits, which continue to keep spending up among members. Partnerships with certain products, such as Disney+, allow users to benefit from discounted subscriptions. Shopping with other retailers, such as RayBan, offers Amex customers cashback opportunities.

Amex has tried several strategies in the past to attract young customers, but it has proven to be a learning curve.

“Until about 10 to 15 years ago, we thought no-fee cards were the entry point to bring younger customers into the franchise,” said Howard Grosfield, president of U.S. consumer services at American Express. wealth in June.

“We learned that this is not the right strategy for millennials and Gen Z. They like brand affiliation. They love to travel and dine out, and they love the access and special experiences that come with our premium cards.”

Amex still expects its younger shoppers to make better use of the traditional rewards system as they get older. In the meantime, however, attracting Gen Z and millennials to experiences is proving to be a gateway to success for them holding onto their Amex cards.

However, Europe continues to put obstacles in the way of the company’s growth.

European incursions

Amex has long lagged in Europe compared to its presence in the US. Retailers and grocers, especially small ones, have been reluctant to accept the card in their stores because of high transaction fees. Instead, they opted to accept rivals Amex, Visa and Mastercard.

The group uses third-party partnerships, including a deal with PayPal, to allow shoppers to use their Amex on the mainland.

“We are focused on expanding acceptance in key cities where our cardmembers live, work and travel,” said Rutledge.

Amex’s rewards programs have long been its USP over other credit card providers, and as Gen Z and millennials are drawn to Buy Now Pay Later companies like Klarna, Amex is leaning into the advantages with which the interest-free lender cannot compete with.

However, Amex’s fees continue to hamper the company’s ability to get Europeans to spend with its cards, as well as the millions of Americans who travel to the continent each year.

In June, eBay banned the use of Amex on its site, citing “unacceptably high fees,” raising the risk that other retailers would follow suit in an ongoing war over credit card fees. Customers can still use their Amex on eBay through PayPal.

“We are certainly disappointed that eBay has made the decision to no longer accept American Express cards,” Rutledge said.

“By doing that, I think they’re going to limit customers’ payment options and take away that service and that security.”

Rutledge added that eBay represents just 0.2 percent of the network’s total volume.

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