JPMorgan Chase Chooses Cardlytics

After their successful stock listing Cardlytics are reporting encouraging results for Q1 2018. This US FinTech focusing on Card-linked Offers (CLOs) also announces a strategic partnership with another leading player: JPMorgan Chase & Co.

In February this year, Atlanta-based Cardlytics raised roughly $70 million. They currently handle loyalty programs for more than 1,500 financial institutions and commit to create additional revenue sources using purchasing history data.

JPMorgan will have access to Cardlytics platform to craft new offers of likely interest to their customers. The tool called Purchase Intelligence relies on AI and Machine Learning algorithms to design customised CLOs and cash-back offers based on banking customers’ actual purchasing habits.

Cardlytics is also running a pilot experiment with Wells Fargo, however no national rollout has been announced. This FinTech now has 60 million users and intends for this figure to grow threefold by the end of 2019.

Comments – Revolution underway for payments data

Opening access to databases held by banking institutions should contribute to crafting new targeted marketing services. Competition from neo-banking players brings along additional opportunities for Cardlytics by way of addressing banks. These leaders try to avoid that new entrants should pre-empt the market, through proposing added-value services based on transactional data their process and, with help from Cardlytics.

This FinTech is already working with Bank of America, and manages to attract another large-scale institution, three months after their IPO. The market for Data is a highly competitive sector: besides the usual US leaders (Google, Apple, Facebook, Amazon…), Cardlytics also has to face companies whose core business is to focus on transactional data. Support from two of the largest banking institutions in the US should help them keep their competitive edge.

For JPMorgan Chase, as one of the main debit and credit card issuers in the US, this agreement with Cardlytics is a way to increase consumers’ average cart amounts while asserting merchants' loyalty.