George Waters (businessman)
George Wilbur Waters | |
|---|---|
| Born | Template:Birth date |
| Died | January 11, 2003 (aged 87) |
| Occupation | Business executive |
| Years active | 1938–1980 |
| Known for | Elevating the American Express Card into a worldwide icon; "Father of the American Express Card" |
George Wilbur Waters (January 9, 1916 – January 11, 2003) was a trailblazer in the credit card sector, widely recognized for elevating the American Express Card into a worldwide icon and the premier offering of American Express. Upon his retirement in 1980, Waters received the title "Father of the American Express Card" in acknowledgment of his contributions.
Early career
After graduating from Indiana University in 1938, Waters entered IBM's sales and marketing training program. During World War II, he held the position of Deputy Chief of Staff within the US Army Air Forces' Office of Statistical Control, where he led a unit that utilized early computing technology to monitor aircraft, weather conditions, and combat operations. This office was notable for producing prominent leaders such as Robert S. McNamara.
Following the war, Waters assumed the presidency of the Massachusetts Steamship Authority, overseeing ferry services connecting Cape Cod, Martha's Vineyard, and Nantucket. He eventually sold this enterprise to the state of Massachusetts and transitioned to become Executive Vice President responsible for marketing at Colonial Stores, a supermarket chain headquartered in Atlanta.
American Express
When American Express introduced its purple charge card in 1958 aimed at travel and entertainment expenses, it ranked behind Diners Club and was operating at a loss. By the time Waters joined in 1961, management was uncertain about its viability and contemplated mergers or partnerships.
Waters pinpointed several challenges: unchecked expansion had compromised internal controls; a significant portion of cardholders were overdue on payments; and fees did not adequately reflect service value. He repositioned the card as a premium offering and teamed up with MIT mathematicians to create algorithms that monitored expenditures without imposing credit limits. Drawing on his Air Force computing experience, he established a data processing system to oversee transactions and enhance control measures.
He eliminated roughly one-third of delinquent accounts, increased the annual fee from $6 to $8, and raised the merchant discount rate from 3% to 7%. To alleviate merchant concerns about higher fees, Waters launched a cooperative advertising initiative that returned 0.5% of charge volume to merchants for advertising featuring the Amex logo—a tactic influenced by his background in supermarket marketing.
This strategy quickly restored profitability to American Express by 1962. By 1964, its charged sales volume had overtaken that of Diners Club.
Waters expanded card acceptance by persuading American Airlines—and subsequently other major carriers—to honor it. He also secured an exclusive agreement with the American Hotel Association, significantly increasing global hotel acceptance.
Throughout the 1960s and 1970s, Waters collaborated with CEO James D. Robinson III to develop the brand internationally, commissioning Ogilvy and Mather’s Andrew Kershaw to craft memorable campaigns including "Do You Know Me" and "Don't leave home without it."
By resigning as Executive Vice President and President of Travel Related Services in 1978, Waters had grown the card’s membership to 9.5 million, generating nearly $1 billion in revenue. This made it American Express’s most profitable division and a globally recognized brand.
Further reading
- Promises To Pay: The History of The American Express Company, American Express Company, 1977
- American Express: An Unofficial Account of the Visionaries Behind the Financial Giant, Peter Z Grossman, Crown Publishers, 1987
- Forbes' Greatest Business Narratives of All Time, Daniel Gross, John Wiley & Sons, 1996
- The New York Times, January 15, 2003
- Time magazine, January 27, 2003