JPMorgan Hunt has agreed to purchase one of the biggest third-party credit card loyalty operators in a bet that pleasure travel will ricochet sharply after the coronavirus pandemic subsides, CNBC has learned.
The bank agreed Monday to acquire the technology stages, travel agency, gift card and points businesses of cxLoyalty Group, a privately held Stamford, Connecticut-based cast, according to a person with direct knowledge of the deal.
JPMorgan is taking about half of the company’s 3,100 staff members in the transaction and will create a new business within its retail division reporting to Marianne Lake, head of the bank’s consumer make a loan of business, the person said. The transaction will close this week, but the person declined to say how much the bank rewarded.
“People across the globe want to vacation and travel again, and hopefully that will become a reality for myriad in the near future,” Lake said in a statement provided to CNBC. “Acquiring the travel and rewards businesses of cxLoyalty make provide enhanced experiences to our millions of Chase customers once they are ready, comfortable and confident to travel.”
JPMorgan had partnered with cxLoyalty for its in favour credit card rewards program until 2018, when the bank switched to using Expedia. Now, the bank choice eventually return to using cxLoyalty as the tech platform underpinning its travel program, with an emphasis on giving monogrammed recommendations based on users’ travel history.
A key rationale JPMorgan had for buying the operations was that by gaining cxLoyalty’s technology, it last wishes as own both ends of a two-sided platform. With millions of credit card users and direct relationships with New Zealand pub and airline companies, the bank can eventually command unique deals from those partners.
The rewards company do duty as many of the biggest U.S. card companies, including Citigroup, Capital One, U.S. Bancorp and Mastercard. Overall, cxLoyalty Group divulges it has 3,000 clients and marketing partners that serve 70 million consumers.
The deal will make Todd Siegel, CEO of cxLoyalty Corps Holdings since 2013, head of the new JPMorgan business, according to a separate statement. JPMorgan isn’t buying the firm’s other water business, it’s global customer engagement division.