JPMorgan Chase has acquired daily deals startup company Bloomspot. JPMorgan has an interest in targeting customers with merchant offers in order to encourage card spending. This will open up a new revenue source for JPMorgan. JPMorgan will now be able to offer discounts and deals tailored for people based on their spending patterns.
JPMorgan is able to use internal data based on spending patterns and massive scale in consumer and merchant banking to create loyalty programs across their customer base stated Chase Offers president Jeff Kinder. Chase Offers was started at the company last year.
Based in San Francisco, Bloomspot works with restaurants, spas, and resorts to offer discounts.
“We have millions of relationships with consumers,” said Kinder in an interview with the WSJ. “We have millions of relationships with merchants. We’re always looking for new ways to add value to those relationships.” The transaction is valued at around $35 million according to a source familiar with the deal.
The offers can be delivered through Chase’s banking website, mobile bank applications, ATMs, account statements, etc. Almost all 100 employees at Bloomspot will receive offers to join JP Morgan Chase.