JPMorgan Chase has agreed to buy one of the largest third-party credit card loyalty operators in a bid for pleasure trips to recover sharply after the coronavirus pandemic eased, CNBC reported.
The bank agreed Monday to acquire the technology platforms, travel agency, gift card and point companies of cxLoyalty Group, a private company based in Stamford, Connecticut, according to a person with direct knowledge of the offer.
JPMorgan is taking about half of the company’s 3,100 employees in the transaction and will create a new business within its retail division that will report to Marianne Lake, head of the bank’s consumer lending business, the person said. The transaction will close this week, but the person declined to say how much the bank paid.
“People around the world want to go back on vacation and travel, and we hope that will become a reality for many in the near future,” Lake said in a statement. “Acquiring cxLoyalty’s travel and rewards companies will provide enhanced experiences for our millions of Chase customers once they’re ready, comfortable and safe to travel.”
JPMorgan had partnered with cxLoyalty for its popular credit card rewards program until 2018, when the bank switched to using Expedia. Now, the bank will end up re-using cxLoyalty as the technology platform that underpins its travel program, with an emphasis on giving personalized recommendations based on users ’travel history.
The rewards company serves many of the largest card companies in the United States, including Citigroup, Capital One and Mastercard. Overall, cxLoyalty Group says it has 3,000 customers and marketing partners serving 70 million consumers.
The deal will make Todd Siegel, CEO of cxLoyalty Group Holdings since 2013, head of JPMorgan’s new business, according to a separate statement. JPMorgan does not buy the firm’s other main business, it is the Global Customer Engagement division.
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