Internet ready: American Express wants credit card growth among middle-class Mexicans.

High-income people in Mexico prefer the American Express card. There, we are very strong, but we do want new segments," says Mario Sanmiguel, president of U.S. travel agency and credit card powerhouse American Express in Mexico. And that's a pretty good reflection of what's going on inside the company these days. From being the preferred card for people of means, the company is now targeting those who aspire to be rich: Mexico's middle class. Three years after launching its Blue card--the weapon of choice for the niche--Blue cards in circulation have grown by more than 300% in Mexico, according to experts.

Although traditionally a card for business executives and the wealthy, American Express in 2002 decided to take a 180-degree turn with its new product. "With Blue we went for a younger segment, one that is more familiar with the Internet. The product has grown a great deal," says Sanmiguel. The company's traditional charge card, which requires the holder to pay the balance in full every month, targets people over the age of 40, 80% of them men. American Express says 70% of Blue cardholders are under 35, and 43% are women.

Just a year after launching Blue in Mexico, American Express has brought on board 97,000 cardholders. As of June, 390,000 cards were in circulation. "Blue was born as a product that evolved with credit necessities," says Adriana Rivera, director of public relations at American Express in Mexico.

With Blue, American Express wants to show the market that it is more than just a credit card company "[The message] was to tell people that American Express is more than a card for services and to reinforce how we see ourselves, as the market leader," says Lorenzo Soriano, marketing director at American Express in Mexico. Last year alone, total credit card use in the country rose by 40%.

American Express has 700,000 charge and credit cards in the country, far behind other card companies in Mexico. The company knows there is a lot of room left to grow; less than a third of Mexico's gainfully employed has a credit card, while 53% carry a debit card, according to the Mexican Banking Association. As of June of this year, Visa managed 30 million debit and credit cards, while rival MasterCard had 23.5 million debit and credit cards.

To attract more clients, American Express will beef up its sales force, offer Internet-ready statements and account summaries, as well as diversify its portfolio. "We are not a company that is out looking for the most coverage in the media, because we feel it's important that the people get to know our product and how we can invest in delivering on our promises when we make them," says Rafael Marquez, vice president for credit products at American Express in Mexico.

The company is participating in a project spearheaded by the Mexican Banking Association that will increase the number of retail outlets that accept credit cards with the hopes that Blue catches on as it did in the United States.

"American Express is attacking a niche market with its [Blue] card, but while it wants to reach more of the population, it's still up against the perception that its brand is for a certain type of person and not everyone accepts it," says Polux E. Diaz, director of the master's program in finance for the Instituto Tecnologico Autonomo de Mexico. No need to explain that to Gabriela Balcazar, who has had a Blue card for a year now. "They charge me higher interest rates and it's not accepted everywhere, which is why I'm just hoping to pay it off and cancel it," she says.

No sale. Blue card's rates might be above market average but that's not stopping penetration among merchants. "If I don't accept American Express, I lose sales. It costs more than others, but there are still many people that like to pay with it due to the benefits, like the membership rewards program," says Tanya Moss, who owns five jewelry stores in Mexico. Mexico is one of the seven biggest markets in the world, and the No. 1 Latin American market for American Express. Negative perceptions among some cardholders aside, the company says its card is the most accepted by merchants in Mexico, a position it expects to defend.

MARISOL RUEDA * MEXICO CITY