American Express to Expand Market for Its Optima Card

In a move that validates bankers’ long-held suspicions, American Express Co. is preparing to make its Optima card widely available to consumers who do not hold American Express cards.

American Express previously made Optima available only to holders of its green, gold and platinum cards. By turning the card into a stand-alone product, American Express is beginning to compete directly against banks’ MasterCard and Visa brands.

The New York-based card giant has already mailed 750,000 Optima applications to people who do not hold American Express cards in 15 test markets, according to industry sources. A call to the company’s customer service line further revealed that the firm plans to pursue these consumers in 1991.

“It will probably be available in your neighborhood in the coming year,” a customer service representative said. He explained that a “special program” making the Optima card available to some consumers who do not have a relationship with American Express has been “quite successful.” A national rollout is planned for May or June, he said.

An American Express spokesman denied that the company has decided to offer the card to all consumers nationwide. He acknowledged that tests have been under way in 15 cities but said the results will not be evaluated until the end of next year’s first quarter.

American Express launched Optima in 1987 as a complementary product to its traditional charge cards.