JP Morgan Chase recently announced that it will be acquiring the credit card rewards business of cxLoyalty Group Holdings. With several coronavirus vaccines being distributed throughout the world, the bank is hoping to take advantage of increased travel in 2021 and beyond.
Key Takeaways
- Chase is acquiring cxLoyalty Group’s credit card rewards business.
- With control over both sides of the earning and redeeming platform, Chase will be able to provide more value to its Ultimate Rewards cardholders.
- Cardholders with other banks may also benefit from the move.
Chase’s Move Is a Win for Ultimate Rewards Credit Card Holders
The Chase Ultimate Rewards program is arguably the most versatile and valuable general rewards program available to credit card users. It provides solid value across several different types of redemption options, and offers more value with travel rewards on select cards.
Until 2018, Chase used cxLoyalty Group to run its rewards platform. Then the bank switched to Expedia, which doubled the number of travel redemption options at the time.
With the acquisition, Chase will gain more control over which options cardholders will have. What’s more, having a direct relationship with travel companies and a sizable portfolio of customers, the bank will be able to provide unique deals to its cardholders that aren’t available to the general public.
Chase is acquiring cxLoyalty Group’s technology platforms, travel agency, gift card, and points divisions, but not its customer engagement business.
Cardholders With Other Banks May Also Benefit
Overall, cxLoyalty Group has 3,000 clients and partners that serve 70 million consumers. Some of those clients include Capital One, Citi, U.S. Bank, and Mastercard. Depending on what Chase decides to do with the rewards business it is purchasing from the company, it could also improve the platforms of other credit card rewards programs.
As post-pandemic travel picks up, Chase will also benefit from increased travel redemptions coming from other rewards programs. With the potential for unique deals for Chase cardholders, though, they stand to benefit the most.
