CNBC learned that JPMorgan Chase has agreed to acquire one of the largest third-party credit card loyalty operators, betting that leisure travel will rebound sharply after the coronavirus pandemic subsides.
According to people familiar with the matter, the bank agreed on Monday to acquire the technology platform, travel agency, gift card and points business of the private company cxLoyalty Group in Stamford, Connecticut.
The person familiar with the matter said that JPMorgan Chase will absorb about half of the company̵
Lake said in a statement: “People all over the world want to take vacations and travel again, and hope that this will become a reality for many people in the near future.” “The acquisition of cxLoyalty’s travel and reward business will provide us with thousands of dollars. Chase customers are ready, comfortable and confident to provide an enhanced experience for their travel.
JPMorgan Chase partnered with cxLoyalty to launch a popular credit card rewards program until the bank switched to Expedia in 2018. Now, the bank will eventually resume using cxLoyalty as a technology platform to support its travel plans, focusing on providing personalized recommendations based on users’ travel history.
Rewards companies provide services to many of the largest credit card companies in the United States, including Citigroup, Capital One and Mastercard. Overall, cxLoyalty Group stated that it has 3,000 customers and marketing partners and serves 70 million consumers.
According to another statement, the transaction will enable Todd Siegel, CEO of cxLoyalty Group Holdings, to serve as the new head of business at JPMorgan Chase since 2013. JPMorgan Chase does not acquire the company’s other major businesses, but the global customer engagement department.
This story is developing. Please check for updates.