Core Insights - American Express is not concerned about competition from buy now, pay later (BNPL) companies as it primarily targets wealthier customers [1][2] Demographics and Target Market - BNPL users typically have lower credit scores and come from lower income brackets, contrasting with American Express cardholders who are generally from higher income levels [2] - A 2024 study from the Federal Reserve Bank of Boston indicates that individuals with lower FICO scores are significantly more likely to utilize BNPL services [2] - The overlap between heavy BNPL users and American Express customers is minimal, as American Express does not cater to the needs of the BNPL demographic [3] Market Trends - The use of BNPL services has increased steadily, particularly during the COVID-19 pandemic when online shopping surged [3] - Some BNPL providers have marketed their services as alternatives to credit cards, but American Express remains focused on its premium offerings [4] Product Offerings - American Express is known for its premium credit cards, which come with high annual fees and exclusive perks, such as access to high-end restaurants and concert tickets [4] - The Amex platinum card has an annual fee of nearly $900, and there is an invitation-only card with a reported initiation fee of $10,000 [5] - While traditional BNPL services are interest-free installment loans, some BNPL companies have started offering loans that accrue interest [5]