What Citi gets from its Kard acquisition

Citi is acquiring Kard, a fintech that specializes in linking rewards programs directly to merchant offers. For retailers and operators, this signals a major shift in how big banks drive customer traffic to your stores or websites. Instead of generic points programs, Citi is moving toward 'card-linked offers.' This technology allows banks to track where customers shop and deliver real-time rewards or discounts specifically for your business. This move is a response to increasing pressure on interchange fees. As banks face lower revenue from standard transaction fees, they are looking for new ways to remain profitable. Their solution is to act as a marketing platform for you. By using Kard’s infrastructure, Citi can offer its millions of cardholders targeted incentives to shop at specific partner merchants. For your business, this means better data on customer loyalty and the potential for more effective, bank-funded promotions that drive repeat visits. You should expect more 'merchant-funded' reward opportunities where the bank provides the platform and you provide the incentive to capture their massive user base.

Source: American Banker — Top News

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