The Global Expansion Gap: Why American Express Still Faces Acceptance Challenges Despite Reaching 160 Million Merchant Locations

American Express has achieved a remarkable milestone—its Cards are now accepted at approximately 160 million merchant locations worldwide as of June 2025, marking nearly a five-fold increase since 2017. Yet behind this impressive figure lies a more nuanced reality: despite this explosive growth, American Express acceptance remains selective and geographically uneven, raising the question of why this premium payment network hasn’t achieved universal adoption.

The Gap Between Scale and Ubiquity

While American Express boasts virtual parity acceptance in the United States—reaching 99% of credit card-accepting locations since the end of 2019—the global picture tells a different story. The company’s 160 million merchant footprint, while substantial, represents a fraction of total worldwide retail touchpoints. This disparity reflects structural challenges: American Express operates as a premium network, deliberately targeting high-value merchants and upscale establishments rather than pursuing universal penetration.

The most telling statistic reveals the company’s strategic focus: American Express cardholders spend 2.9 times more annually than other network users in the U.S., and 4 times more internationally. This premium positioning creates a natural ceiling on acceptance—mainstream merchants with low average transaction values have minimal incentive to pay American Express’ higher processing fees.

Regional Acceptance Remains Inconsistent

Geographic expansion has been impressive but uneven. In Japan, one of the top travel destinations for cardholders, American Express added over one million new merchant locations in a single year. The United Kingdom saw a threefold increase in acceptance locations since 2021, while the Caribbean expanded coverage across 22 islands with 25,000 new signings in 2024 alone.

However, these successes highlight a broader challenge: in many emerging markets and developing regions, American Express adoption remains minimal. The network’s expansion through payment facilitators (43 million locations) and digital wallets in China (34 million locations) suggests that direct merchant relationships remain concentrated in developed economies.

Vertical Categories Show Selective Strength

American Express has prioritized specific spending categories where its cardholders concentrate their spending:

Airlines and Hospitality represent the strongest vertical. The network is accepted at the vast majority of 4- and 5-star hotels worldwide, and recent signings with airlines like Wizz Air and Binter position Amex for broader European airline acceptance. However, budget airlines and budget hotels—where most travelers actually spend—remain largely outside the network.

Transit and Urban Mobility have emerged as a growth frontier. With over 700 transit authorities globally now accepting tap-to-pay Amex payments, including recent launches in Beijing, Shanghai, and San Francisco’s BART system, the network is addressing everyday payment scenarios. Yet this still represents a small fraction of global transit systems.

Dining illustrates the premium positioning challenge most clearly. While American Express cardholders spent $87 billion on dining in the U.S. in 2024, and international restaurant acceptance has grown double-digits since 2021, premium restaurant adoption dramatically outpaces mainstream dining venues. A cardholder may find acceptance at Michelin-starred establishments but struggle at casual neighborhood restaurants.

The Demographic Shift and Future Obstacles

American Express revealed that Millennials and Gen Z comprise 75% of new U.S. Consumer Gold and Platinum cardholders in Q2 2025. This demographic shift toward younger, experience-focused consumers drives demand for acceptance in travel, dining, and lifestyle categories. Yet these younger cohorts also expect ubiquity—the friction of discovering Amex isn’t accepted at certain venues contradicts the frictionless payment experience they demand.

This generational transition presents both opportunity and challenge. Younger consumers spend on different merchants than previous generations, potentially forcing American Express to expand acceptance beyond traditional luxury categories. Simultaneously, their expectations for universal acceptance highlight why American Express’ selective positioning may face pressure.

What the Numbers Actually Mean

The company’s claim of 160 million merchant locations requires contextual understanding. This figure includes payment facilitators and digital wallet integrations—channels that may not involve direct merchant awareness or activation. A merchant integrating Amex through a payment facilitator may not actively promote American Express acceptance, meaning cardholders could encounter surprise rejections despite the network’s impressive scale metrics.

American Express’ doubling-down on premium positioning explains both its growth and its limitations. The network has successfully deepened penetration among luxury merchants and hospitality providers while expanding into transit and selected retail verticals. However, true universality—the ability to use an American Express Card anywhere credit cards are accepted—remains a distant goal, particularly in price-sensitive retail categories and developing markets.

The expansion to 160 million locations represents genuine progress, yet the persistent gaps reveal that American Express continues to operate as a premium, selective network rather than a universal payment solution.