NEW YORK—Citi is moving to expand the reach and personalization of its credit card rewards business with a deal to acquire Kard Financial, a commerce media and rewards platform that connects banks and FinTechs with merchants and brands, PYMNTS reported.
Citi said the acquisition would combine its scale and payments expertise with Kard’s technology, merchant relationships and talent, allowing the bank to offer more personalized rewards while giving merchants and brands additional ways to reach cardholders. The transaction remains subject to customary closing conditions, and the companies will operate independently until it closes.
“With this acquisition, we believe we can work with Kard to accelerate innovation and deliver more personalized experiences for customers while creating new opportunities for brands and merchants to reach, engage and reward consumers in more meaningful ways,” Abhinav Anand, Citi’s head of value cards, lending and commerce, said in announcing the deal.
PYMNTS reported that Citi executives outlined a similar strategy at the bank’s Investor Day in May, when they described efforts to drive more customer spending through its travel, dining and rewards ecosystem. Pam Habner, head of U.S. consumer cards, called the approach a “virtuous cycle of growth” built around partnerships, loyalty and digital engagement.
The deal also gives Citi a platform with significant existing transaction volume. PYMNTS noted Kard received $15 million in growth capital from Trinity Capital in October, when Kard was reported to be reaching tens of millions of consumers and processing more than $10 billion in transactions monthly. Kard said Citi’s scale and resources should allow it to add merchants and brands, invest further in its products and accelerate development of its platform.