JP Morgan Combines Daily Deals in New Credit Card Play
Banking giant JP Morgan Chase could be the newest player in daily deals, an industry that blossomed as shoppers wanted deep discounts from companies like Groupon, LivingSocial and other online coupon companies. In a recent deal, JP Morgan Chase agreed to acquire daily deal company Bloomspot to bring instant deals to its credit card customers.
JP Morgan Chase plans to integrate Bloomspot’s daily deals to its vast credit card portfolio. The idea is simple, JP Morgan Chase knows what customers want to buy, and Bloomspot knows where to find deals. In combining the credit card data with a daily deals business, JP Morgan Chase believes that it can deliver highly targeted discounts to its credit card users. The plan is to give customers immediate rewards and discounts without having to send emails or make a coupon purchase. Customers will simply swipe their card and receive the rebate and discount back on their credit card statement.
The deal also works better for small businesses, which are pushed away from other daily deal sites because of their hefty cost. Groupon takes as much as 40% of the revenue from small business owners whereas Bloomspot will charge only fractions of a percentage point or less due to the lower costs of doing business.
Cardholders should be on the lookout; your JP Morgan Chase credit card could soon turn into a new avenue for finding hot deals at the places you frequent the most. The rebates system would allow customers to make purchases and get an instantaneous deal without having to buy a coupon, subscribe for daily deal emails, or sign on to join the program.
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