Credit Card News
JPMorgan Chase to Acquire Global Loyalty Business From cxLoyalty Group Holdings
It looks as though certain credit card users might see some changes to their loyalty programs in 2021. This week, JPMorgan Chase announced that it had reached a deal to acquire the Global Loyalty business of cxLoyalty Group Holdings. According to the press release, this purchase will include “cxLoyalty’s leading technology platforms, full-service travel agency, gift card, merchandise, and points bank businesses.”
While this purchase may be new, Chase is no stranger to cxLoyalty. As The Points Guy recalls, the company previously powered the Chase Ultimates Rewards travel portal prior to 2018 when Expedia took over. Notably, Chase has recently emphasized said platform, adding a 3% back on Chase Ultimate Rewards travel bookings category to the Freedom Unlimited card as well as the new Freedom Flex card. Incidentally, cxLoyalty also counts issuers such as Citi and Capital One among its clients.
In a statement, JPMorgan Chase’s CEO of Consumer Lending Marianne Lake said of the acquisition, “This investment demonstrates our commitment to deliver exceptional travel benefits at-scale to our large and rapidly growing customer base. 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, “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.”
Meanwhile, cxLoyalty CEO Todd Siegel stated, “JPMorgan Chase is the right partner to further invest in our leading loyalty business. This partnership allows us to strengthen and expand our technology solutions, rewards content and world class personalized customer experience for our Fortune 500 clients and their millions of customers, globally.”
As Lake notes, this planned purchase is just the latest sign that Chase is preparing for the travel market to return and thrive once again. Other examples of this include the recent announcement that Chase would be debuting a co-branded credit card with AirCanada for the U.S. market next year and the airline’s Aeroplan loyalty program will become an Ultimate Rewards points transfer partner. In the meantime, however, Chase has extended its “Pay Yourself Back” program — which allows cardholders to redeem points for everyday purchases at the rate akin to what they would enjoy for travel bookings — until at least April 30th, 2021.
It’s fairly easy to see how a major credit card — and travel-minded credit card, at that — issuer such as Chase would benefit from bringing a proven loyalty program in house. At the same time, the purchase could also impact Capital One and Citi who may not want to purchase their services from a competitor. Regardless, hopefully this acquisition will mean a more streamlined and consistent experience for Chase customers as they continue to earn and (eventually) redeem their loyalty points in the new year.
