Amex Nearly Missed Out on Credit Card Dominance

In the late 1950s, American Express faced significant internal division regarding the adoption of a new product: credit cards. While some executives championed the company's traditional travelers' checks, others strongly advocated for entering the burgeoning credit card market, viewing it as a crucial growth area. Despite initial hesitations from some leaders who reportedly "cannot develop any enthusiasm for credit cards," the company's leadership ultimately decided to proceed.

American Express announced its entry into the charge card business in late 1957. The public's response was overwhelming, leading to the issuance of 250,000 cards before the official launch on October 1, 1958. Initially, these cards were made of paper, but by 1959, American Express pioneered the use of embossed plastic cards. Over the years, the company expanded its card offerings with the introduction of the Gold Card in 1966, the Platinum Card in 1984, and the Optima card in 1987. As of 2025, cardholders had charged an impressive $1.67 trillion across millions of active accounts.

The company's history is marked by significant financial innovations. Founded in Buffalo on March 18, 1850, as a freight forwarding company, American Express made a key move into financial services in 1882 with the introduction of money orders. A later turning point occurred in the late 1880s when a company president, facing difficulties with letters of credit in Europe, directed a subordinate to develop an improved system, foreshadowing the company's future financial products.