Wall Street investment bank JP Morgan Chase (NYSE: JPM) recently announced that it plans to acquire the Global Loyalty business of privately held cxLoyalty Group Holdings. This particular deal involves the acquisition of cxLoyalty's technology platforms, full-service travel agency, gift cards, merchandise, and points bank businesses. As a result of the deal between these two companies, cxLoyalty and JP Morgan also plan to grow and succeed in marketing opportunities.
Along with the collaboration of JP Morgan, cxLoyalty intends to invest even more so than it has in the past, providing more of these types of services to their clients along with satisfactory customer experiences.
"We are pleased to announce this compelling transaction, which provides significant benefits for our clients, customers, employees, and other stakeholders. We have built two strong distinct businesses, and we look forward to enhancing their focus on their unique strategic priorities and market opportunities," Todd Siegel, Chief Executive Officer of cxLoyalty Group Holdings, stated in a press release. "cxLoyalty will continue to strengthen and expand the value of relationships for its clients and their customers through its leading technology rewards content in relevant categories including travel, gift cards and merchandise, and world-class personalized customer experience."
JPMorgan had partnered with cxLoyalty for its credit card rewards program until 20218, when the bank switch to using Expedia (NASDAQ: EXPE), according to CNBC. The rewards company also serves other U.S. credit card companies, including Citigroup (NYSE: C), Capital One (NYSE: COF), U.S. Bancorp (NYSE: USB) and Mastercard (NYSE: MA).
In many ways, this new deal could positively impact JP Morgan, particularly as the coronavirus rollout continues into 2021. The banking firm has predicted that future travel will be more successful, and therefore, believes that it will fully take advantage of the deal with cxLoyalty Group Holdings.
Although the pandemic has caused travel to decrease dramatically, rewards programs within the banks, such as JP Morgan's Sapphire Reserve, have helped this particular problem avoid membership card cancellation and reduce annual membership fees. Many customers may become concerned about the nature of travel in the future, but JP Morgan Chase seems to have a firm handle on what it desires out of the situation.