JPMorgan Chase has agreed to buy one of the largest third-party credit-card loyalty operators in a condition that the happiness journey will quickly reverse after the Coronavi virus epidemic, CNBC has learned.
The bank agreed on Monday to acquire the technology platform, travel agency, gift card and points businesses of cxLoyalty Group, a privately held Stamford, Connecticut-based company, according to a person with direct knowledge of the deal.
JPMorgan has moved about half of the company’s 3,100 employees into transactions and will create a new business in its retail division to Marianne Lake, head of the bank’s consumer lending business. The transaction will close this week, but the person declined to say how much the bank paid.
“People all over the world want a holiday and travel again, and hope that it will become a reality for many people in the near future,” Lake said in a statement. “CxLoyalty will give our millions of Chase customers a once-in-a-lifetime experience to get the business of travel and rewards, once they are ready, comfortable and confident to travel.”
JP Morgan partnered with cxLoyalty for its popular credit-card rewards program until 2018, when the bank switched to using Expedia. Now, the bank will eventually return to using cxLoyalty as a tech platform outlining its travel program, with an emphasis on giving personalized recommendations based on users’ travel history.
The Reward Company serves several large US card companies including Citigroup, Capital One and MasterCard. Overall, the cxLoyalty Group says it has 3,000 customers and marketing partners that serve 70 million consumers.
The deal will make Todd Saigal, CEO of cxLoyalty Group Holdings since 2013, the head of the new JPMorgan business, according to a separate statement. JPMorgan is not buying the firm’s other core business, it is the Global Customer Engagement Division.
This story is developing. Please check back for updates.