Amex, Delta card spending soars

American Express is seeing record-breaking engagement with its co-branded Delta Air Lines credit cards, signaling that premium consumer spending remains robust despite broader economic concerns. For retailers and operators, this trend validates that high-end consumers are still actively using credit for lifestyle and travel purchases. While some lenders are tightening credit boxes, the Amex-Delta partnership shows that loyalty-linked financing remains a powerful driver for transaction volume. The surge in spending highlights a shift in consumer behavior: shoppers are prioritizing credit cards that offer tangible rewards and travel perks. For a business owner, this means your customers are likely carrying cards with high annual fees but also higher purchasing power. Transaction volumes on these cards reached new milestones, suggesting that the 'premium' segment of the market is not pulling back. However, it is not all good news. While spending is up, Amex is also increasing its provisions for credit losses. This indicates that even premium lenders are bracing for a potential rise in delinquencies. Merchants should take this as a sign to keep their financing options diverse. Relying solely on one type of credit provider could be risky if lenders begin to pull back on approvals to mitigate their own risk. Keep an eye on how these major issuers adjust their lending criteria in the coming months, as it will directly impact your customers' ability to finance large ticket items at the point of sale.

Source: Payments Dive

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