Q: Looking back at 2023, what were the business highlights at American Express and what are your key objectives for 2024?
A: Last year, American Express enjoyed another year of growth in the UK, welcoming high street brands such as B&M, Timpson, and Savers to our ever-diversifying merchant network. We also strengthened acceptance across a number of sectors, including in charity shops, with the addition of British Heart Foundation and Marie Curie.
We continued to back small businesses in 2023, with our long-standing support of the Small Business Saturday campaign, which is now marking its 12th year, along with our Backing International Small Restaurants programme, which awarded thousands of pounds of business-building grants to independent operators.
We are ambitious about the year ahead and continuing this momentum and providing more places where Cardmembers can use their Card.
Q: What is the American Express strategy in terms of signing up new retail businesses to accept AMEX and what are the current trends in terms of uptake?
A: We look to expand our merchant network across all sectors according to where our Cardmembers tell us they want to spend, B&M, for example, was one of those brands. It’s a strategy that continues to work well for us – over the past three years, the number of places in the UK where Cardmembers can use their Card has grown by 46% and we are continuing this upward trajectory.
Of course, there’s more to be done and there’s still a big opportunity in front of us. For example, our partnerships with payment facilitators are fuelling our momentum and adding new places that accept Amex at accelerated rates.
Q: For an independent retailer, what are the key benefits of being able to accept American Express Card payments?
A: Over the past three years, the number of small and independent merchants accepting Amex has grown by over 50%, chiefly because they recognise the value of partnering with us. Bringing more customers through the door is crucial for retailers of all sizes, and by adding American Express as a payment choice, independent retailers can enhance their customer experience and capture more spend. Our research shows our Cardmembers spend on average 3.9 times more annually and 3.2 times more frequently compared to the average credit and charge card user in the UK.
We’re also committed to a hassle-free set up and making it as seamless as possible for small merchants to accept American Express.
Initiatives such as Shop Small help drive footfall from our Cardmembers, and the marketing behind these campaigns helps to raise awareness of the important role independent retail businesses play in our local communities. In addition, this year we’re again partnering with TikTok to offer small businesses advice on how to best market themselves through the social channel.
Q: What about your global ambitions? To what extent is the UK strategy aligned with the global plan?
A: In the UK, our strategy aligns closely with the global plan, focusing on enhancing services, increasing merchant acceptance, and fostering customer loyalty. This includes partnering with payment facilitators to drive acceptance at scale. They set up American Express acceptance for businesses on our behalf, and issue cards on our network.
As a result, we’ve more than tripled the number of places that accept our cards internationally since 2017 – an achievement that is completely changing the experience for our customers who spend with Amex around the world.
Q: What are the top payment trends in the UK?
A: From the rise of mobile payments to the increasing popularity of contactless transactions, it’s clear that the way we pay continues to evolve rapidly. But with this evolution comes increased demand for seamless, convenient, and secure payment experiences, resulting in fierce competition amongst retailers to win share of wallet.
For example, American Express’ shopper trends research revealed that 44% of consumers would be willing to share personal data in return for an easier payments process, with 43% citing the same intention for a faster checkout journey. These sentiments are paving the way for rapid growth In Open Banking-powered payments, which allow consumers to complete transactions seamlessly from their bank accounts without having to enter card details or complete additional authentication checks.
Q: What is the appeal of AMEX to Millennial and GEN Z customers?
A: There is a whole new generation of Cardmembers who, from the very start of their relationship with us, are accustomed to using their Amex Cards for their everyday spending. These Millennial and Gen Z consumers are currently Amex’s fastest-growing customer cohort, representing over 60% of new consumer accounts acquired globally.
We attribute this growth to understanding the passions and interests of our Cardmembers – specifically the desire for experiences and being rewarded for their spend. For example, our Experiences programme gives Cardmembers the chance to purchase tickets to some of the most sought-after events, often before they go on sale to the general public – whether they’re a music fan, a film buff, a theatre lover, sports fan or a keen foodie.
Q: To what extent is the popularity of BNPL finance impacting more traditional payment methods and credit card payments in particular?
A: Ultimately, choice is paramount when it comes to payment options and there is increased recognition from merchants that offering a variety of payment methods is important in attracting new customers. Buy Now Pay Later offers consumers another choice at checkout.
Q: What new payment products does American Express offer and what are the benefits?
A: We know our Cardmembers value flexibility including in how they pay. We recently launched ‘Plan It’ – a new offering for the UK market that provides more flexibility by allowing Amex Cardmembers to pay off purchases on their statement, or a portion of their monthly bill, in instalments. They are charged a fixed monthly fee for their instalment plan, however they will not be charged interest on any balance in their instalment plan.
While not new, Pay with Bank transfer – our Open Banking-powered payment product – lets consumers pay via a direct transfer from their bank account, whether or not they are an Amex Cardmember.
Not only does this enhance the checkout experience by offering more choice and a seamless way of paying, but it’s also more efficient for merchants – offering lower payment processing fees and eliminating the need to store customer card information.
In the last year alone, we have announced partnerships with a range of merchants across sectors as diverse as transit, travel and football, where fans at certain clubs can use Pay with Bank transfer for online purchases from the clubs’ shops.
Q: How can retailers better leverage payments to drive customer loyalty?
A: In today’s competitive retail landscape, creating a seamless payment experience can help retailers enhance customer satisfaction and build brand loyalty.
Our loyalty research highlights the impact of payments experiences on customer retention. It found that just over two fifths (42%) of shoppers have taken their custom elsewhere after experiencing a slow checkout and payment process, and over a quarter (28%) wouldn’t return to a store due to a lack of payment options.
Alongside driving loyalty from existing customers, offering a range of ways to pay and creating value in the purchasing journey not only gives merchants access to a new customer base, but helps drive additional spend. This is especially true when it comes to Amex Cardmembers, who, via our tailored and targeted Amex Offers programme, are incentivised to spend with retailers across all sectors.
Q: Finally, what’s next?
A: My job is about ensuring our Cardmembers can spend on their Amex Card in all the places they want. The focus continues to be on growing our network, offering more and more merchants access to our loyal and higher spending Cardmember base. We continue to look at ways we can make accepting Amex more seamless and how we can bring retailers of all sizes more customers that can help them grow their businesses.
