Gupta said the change is being driven by rapid digital adoption and a shift in what merchants expect from payment partners.
“Payments are becoming a driver of customer engagement, loyalty, and long-term value, rather than just a way to complete a transaction,” he said.
From acceptance to integrated offerings
As the ecosystem expands, credit card companies are strengthening partnerships with merchants, banks, acquiring partners, and fintech platforms to widen acceptance across online and offline channels.
At the same time, they are embedding card usage more deeply into everyday consumer activities, including retail purchases, dining, and travel.
Companies are also investing in areas such as tokenisation, fraud controls, and faster authorisation systems to improve reliability and security, while continuing to expand acceptance across geographies.
Rising demand for value-added services
Merchant expectations have moved beyond basic acceptance, with businesses seeking tools that streamline checkout, improve security, and generate insights into customer behaviour.
Gupta pointed to increasing interest in flexible payment solutions that support hybrid commerce models, such as pay-by-link, which allows merchants to collect payments remotely without requiring physical infrastructure.
He added that spending data, covering metrics like repeat transactions, frequency, and category-level trends, is helping merchants sharpen their customer targeting and retention strategies.
Push into non-metro markets
Expanding card acceptance beyond metros remains a key priority.
Gupta said partnerships with banks and payment platforms are enabling faster onboarding of merchants in Tier 2 and Tier 3 cities, helping extend the reach of credit cards into new segments.
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Globally, American Express has built an acceptance network of over 170 million merchant locations as of January 2026. In India, the focus is on balancing growth in premium categories with increased usage in everyday spending.
AI deepens role in payments
Artificial intelligence is becoming central to how credit card companies operate.
Gupta said AI is being used to strengthen fraud detection systems, tailor customer experiences, and improve service delivery.
The company is also exploring generative AI applications across customer support, risk functions, and sales processes, with an emphasis on responsible and secure implementation.
Customer quality and insights in focus
Access to high-spending, loyal customers continues to be a differentiator for merchants.
Gupta noted that insights derived from cardholder behaviour are helping businesses better understand demand patterns and encourage repeat engagement, particularly in segments such as travel and lifestyle.
Outlook: A more integrated ecosystem
Over the next three to five years, India’s merchant ecosystem is expected to become more digitally integrated and increasingly driven by data-led decision-making.
Payments, Gupta said, will play a more strategic role in shaping customer relationships and business outcomes.
“Merchants will look for partners who can combine acceptance with insights, servicing, and trust,” he said, adding that American Express aims to grow both its acceptance network and relevance across high-frequency spending categories.
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