Amex Slashes Points Value for Australian Travellers in Major Loyalty Devaluation
SYDNEY, 27 January 2026 – American Express has confirmed a substantial devaluation of its Membership Rewards points for Australian cardholders, with the cost of converting points to airline miles set to rise by up to 50 per cent from next month. The move, part of a global strategy to trim programme costs, comes as new data shows Amex’s transaction value in Australia punches well above its weight, accounting for over 22 per cent of all credit and charge card purchase value.
Points Devaluation Details
From 23 February 2026, American Express will increase the number of Membership Rewards (MR) points required for transfers to all of its frequent flyer partner programmes. The changes affect all MR-earning cards issued in Australia.
Analysis from points websites indicates the devaluation effectively cuts the earn rate on spending for cardholders who transfer to airlines. For example, transfers to Emirates Skywards will be hit hardest, requiring 50 per cent more points for Platinum Charge cardholders.
Revised Transfer Ratios (Key Partners)
| Frequent Flyer Programme | New Rate (From 23 Feb 2026) | Increase |
|---|---|---|
| Qantas Frequent Flyer | 500 MR pts : 250 Qantas pts | 25% |
| Velocity Frequent Flyer | 500 MR pts : 250 Velocity pts | 25% |
| Singapore Airlines KrisFlyer | 500 MR pts : 250 KrisFlyer miles | 25% |
| Emirates Skywards | 600 MR pts : 250 Skywards miles | 50% |
Cardholders are advised to transfer any existing points balances before the 22 February deadline to lock in current rates. The company stated transfer rates for hotel partners like Hilton Honors and Marriott Bonvoy remain unchanged.
Amex in the Australian Market
Despite the devaluation, American Express maintains a strong and growing presence in Australia. According to the latest Reserve Bank of Australia data, Amex cards accounted for 9.5 per cent of credit and charge card purchase transactions by volume in July 2024. More significantly, the value of those transactions represented 22.4 per cent of the total, indicating cardholders spend more per transaction.
Globally, the company reported a market capitalisation of US$184.12 billion as of September 2024. In 2023, worldwide spending on Amex-issued cards totalled US$1.46 trillion.
Acceptance and Consumer Sentiment
American Express is accepted at most major Australian retailers including Woolworths, Coles, Bunnings Warehouse, and JB Hi-Fi, with over 610,000 new merchant locations added in 2024. Notable exceptions include ALDI and Costco. Government acceptance is mixed; for example, the Australian Taxation Office accepts Amex with a 1.45 per cent surcharge, while some state transport agencies do not.
Consumer sentiment appears divided. While the Australian Financial Complaints Authority (AFCA) recorded 555 complaints against American Express Australia in the second half of 2023 (the fourth highest), the company was highly commended for customer service in the 2024 Finder Credit Card Satisfaction Awards, with 97 per cent of customers rating it trustworthy.
Corporate and Financial Outlook
American Express (NYSE: AXP) recently declared a regular quarterly dividend of US$0.82 per common share, payable on 10 February 2026. The company will host its Q4 and full-year 2025 earnings webcast on 30 January 2026.
Financial analysis for 2024 showed revenue of US$74.2 billion and net income of US$10.1 billion. However, analysts note concerns including a high debt-to-equity ratio and liquidity constraints, with current and quick ratios at 0.26. The consensus analyst rating is “Hold”.
Frequently Asked Questions
When does the Amex points devaluation happen?
The new, less favourable transfer rates come into effect on 23 February 2026. Transfers initiated on or before 22 February will use the current rates.
What is the best thing to do with my Amex points before the change?
If you intend to use your Membership Rewards points for flight rewards, you should transfer them to your preferred airline frequent flyer programme before the deadline. Transfers to Qantas and Velocity are typically instant.
Are all Amex cards affected?
Yes, the devaluation affects all American Express cards that earn Membership Rewards points. Co-branded cards that earn airline points directly (like the Amex Qantas cards) are not affected.
How widely is American Express accepted in Australia?
Acceptance is high at major retailers, supermarkets, and service providers, but not universal. It is generally less accepted than Visa or Mastercard, and merchants may apply a higher surcharge (averaging 1.35 per cent according to the RBA).