American Express has never reached the same level of success as Visa or Mastercard mainly because its business model is more restrictive: it charges higher fees to merchants, has lower global acceptance, and positions itself as a premium brand, which limits its mass reach.
📉 Reasons why Amex fell behind
Lower international acceptance: Visa and Mastercard became global standards, while Amex remains stronger in the U.S.
Costs for merchants: Small businesses often reject Amex because the fees are higher.
Elitist strategy: By focusing on premium clients, Amex limits its user base compared to the mass appeal of Visa/Mastercard.
Fewer alliances with banks: Visa and Mastercard expanded thanks to thousands of issuing banks; Amex, being more centralized, did not achieve that level of penetration.
⚖️ Strategic trade-off
American Express does not compete on volume, but on value per customer. Its users tend to spend more per transaction and enjoy exclusive benefits (reward programs, insurance, VIP access). However, this premium focus means it will never be able to match the massive scale of Visa and Mastercard.
👉 In other words: Visa and Mastercard won by being universal; Amex remained a symbol of exclusivity.

"Visa and Mastercard are like WhatsApp and Facebook: everyone uses them. Amex is more like LinkedIn Premium: few have it, but those who use it seek status and exclusive benefits."