American Express Targets Millennials with a No-Fee Delta Credit Card

by Brian Riley 0

 The pendelum is beginning to swing away from high priced travel cards. Chase just launched their leaner TravelBank reward program, featuring a leaner version of their long established program. Now comes American Express with their new spin on the Delta card.

Forget the noise in the article about Costco. Amex will rebuild; they have a long history in pioneering the closed loop card. This is a good example of their nimbleness.

• AmEx will debut the Blue Delta SkyMiles credit card this week, offering two miles per dollar spent at U.S. restaurants and on Delta Air Lines Inc. purchases, and one mile per dollar spent everywhere else.

• It will be one of the few airline co-brand cards that don’t come with an annual fee, a decision AmEx and Delta made to appeal to millennial travelers, said Eva Reda, the lender’s executive vice president of consumer partnerships and product development.

So, as we discussed in the sustainability of card rewards, this new model will probably not experience what we expect to see in first year attrition. Features look good here, and perhaps this will become the new, leaner, credit card model.

We haven’t seen much about APR pricing, but this is surely a start towards a sustainable model. A breakthrough of sorts.

Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group

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