JPMorgan Chase (NYSE:JPM) has agreed to purchase one of the biggest third-party credit card loyalty operators in a bet that pleasure travel will rebound sharply after the coronavirus pandemic subsides.
Reports say the bank agreed Monday to acquire the technology platforms, travel agency, gift card and points businesses of cxLoyalty Group, a privately held Stamford, Connecticut-based company.
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 reporting to the 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 across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future,” she continued said in a statement.
“Acquiring the travel and rewards businesses of cxLoyalty will 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 popular credit card rewards program until 2018, when the bank switched to using Expedia. Now, the bank will eventually return to using cxLoyalty as the tech platform underpinning its travel program, with an emphasis on giving personalized recommendations based on users’ travel history.
The rewards company serves many of the biggest U.S. card companies, including Citigroup (NYSE:C), Capital One (NYSE:COF), U.S. Bancorp (NYSE:USB) and Mastercard (NYSE:MA). Overall, cxLoyalty Group says it has 3,000 clients and marketing partners that serve 70 million consumers.
JPM shares took on 36 cents Tuesday to $125.71.