Groupe Aeroplan has paid US$23 million cash for a minority stake in Cardlytics, a U.S. based company that uses information from financial institutions to deliver personalized merchant offers to the banks’ cardholders.
The Montreal-based company, which operates customer loyalty programs for Air Canada and other businesses, said it’s joining a group of existing investors that will inject a total of US$10 million in additional expansion capital in Cardlytics.
Cardlytics uses individual financial card information – captured and protected by the financial instructions – to provide personalized merchant offers to consumers.
The targeted advertising is delivered to consumers by electronic banking channels, such as mobile phones, e-mail and online banking.
Rupert Duchesne, Aeroplan’s president and chief executive officer, said the investment in Cardlytics will complement its own suite of loyalty services – such as the Aeroplan frequent-flyer program it manages for Air Canada.
“Our alliance with Cardlytics will also give us invaluable access to top retailers around the world and is in line with our strategy of making small strategic investments in the data, mobile and digital spaces,” Duchesne said.
Cardlytics chief executive Scott Grimes said the company can reach 70% of U.S. households in conjunction with its financial institution partners.
“Our deep strategic alliance with Groupe Aeroplan positions us to rapidly establish the same leadership position in other major markets,” Grimes said.
Groupe Aeroplan operates in several countries including Canada, the United Kingdom, and India. It also has a minority position in Club Premier, a Mexican loyalty program.
