Amex retrieves market share
American Express has begun to claw back market share in the domestic card payments market following the collapse of its companion card partnerships with the major banks.The latest credit and charge card statistics published by the Reserve Bank's Payments System Board show that AMEX is rebuilding its presence in the Australian market only five months after National Australia Bank stopped distributing and servicing the companion card.According to the PSB, AMEX grew its share of domestic credit and charge card spending to above 16.5 per cent in August - a significant improvement on the 15.8 per cent it recorded in July.However, the global payments giant has some way to go to retrieve its market position of 18 months ago when it was accounting for more than 19 per cent of card spending in Australia.Austin Huntsdale, head of consumer cards in Australia for American Express, attributed the turnaround to the introduction of new benefits for cardholders and a widening of the merchant network."We're continuing to provide our card members with new benefits, product features and high value merchant offers, as well as continuing to expand our merchant network," he said."All of these things drive greater engagement with our brand, and provide more reasons for our card members to spend and earn points on their cards."AMEX has had to rejig its Australian business model in the last year after the move in July 2017 by the Reserve Bank to impose interchange fee caps on credit card transactions.The caps forced the major banks to reduce earn rates on rewards programs and rationalise their card offerings to preserve margins.The reform eroded customer numbers for AMEX, with all four major banks signalling they would ditch their companion card deals.Huntsdale also attributed the business resurgence to a new distribution arrangement secured a few months ago with Westpac.While Westpac discontinued the companion card last year, it has negotiated a new deal to market cards issued and managed by AMEX."Earlier this year we expanded our partnership with Westpac to introduce two new cards issued and serviced directly by American Express," Huntsdale said."We've enabled Westpac customers to continue earning accelerated Altitude or Qantas Frequent Flyer points from spend on their American Express Card, consolidated into one account with their other Altitude product."These cards are proving popular with consumers who previously held an Amex card issued by a major bank, as they appreciate the value of the rich benefits that come with American Express such as airport lounge access and entertainment offers."