AMEX Blue Card Ownership Soars

American Express Co's. Blue Card has experienced the strongest launch of a new card product since the General Motors card rolled out in 1992. After 18 months the product card is in the hands of 5.8 million cardholders according to Brittain Associates (an Atlanta-based card industry consultant). The card has $6 billion in receivables outstanding, and about 50% of cardholders revolve a balance.

Consistent with its marketing campaign targeting younger, technological savvy customers, American Express Company is offering its Blue Card to college students. It will exchange cards issued under its American Express for Students program for the chip-based blue card. The premises for the exchange are that college students are computer literate and attuned to the benefits offered by the card. According to CardLine, Amex is providing the students with an online wallet, a small card reader, and a Web site where cardholders can pay their bills online and check concert listings. In addition, Amex promises that if an online retailer will not accept for credit any returned merchandise that was purchased with the Blue, Amex will reimburse the cardholder for the cost. The Blue Card for students will carry the same interest rate as the current student cards: prime plus 7.99 percent.