Citi buys Kard to boost card rewards & commerce media

Citi has agreed to acquire Kard Financial, adding a commerce media and rewards platform to its US consumer cards business.

The deal brings Kard into a part of Citi that is expanding how it connects cardholders with merchant-funded offers. The acquisition is intended to help Citi deliver more personalised credit card rewards and offers while creating new ways for merchants to reach consumers.

Kard operates a platform that matches offers with consumers based on verified transaction data, used by banks, fintechs, and neobanks. It also works with brands and merchants that fund rewards designed to influence spending behaviour and measure campaign results.

Citi did not disclose financial terms. The bank said the acquisition is not material to its financial results and remains subject to customary closing conditions.

Until the transaction closes, both businesses will continue to operate independently.

Cards strategy

The move sits within Citi's US consumer cards operation, which manages one of the larger cardholder bases in the American market. Citi said adding Kard supports priorities outlined at its investor day and strengthens its broader commerce ecosystem strategy.

For Citi, the appeal appears to be combining its scale in cards and payments with Kard's merchant relationships and software tools. That could allow the bank to build more targeted rewards into existing card programmes rather than relying solely on broad, fixed incentives that apply to all users equally.

Kard's platform is built around transaction-level data and automated matching of offers to likely buyers. The model is designed to help financial institutions present rewards in a more tailored way while giving merchants clearer information on whether an offer led to a purchase.

The approach has become more relevant as banks, payment companies and retailers look for new ways to use spending data to improve customer engagement and generate advertising income from commerce activity. In this market, commerce media links consumer payment behaviour with marketing spend from brands and merchants.

Merchant links

Kard says it has built a network spanning leading fintechs, banks and neobanks. Citi said those relationships, along with Kard's brand connections and staff, were part of the rationale for the acquisition.

The bank also highlighted the size of its own card base as a factor in the combination. Citi said it has 70 million cardmembers, including general-purpose and private-label credit cards, as well as instalment lending, primarily in the United States.

Abhinav Anand, Head of Value Cards, Lending and Commerce at Citi, set out the bank's view of the deal in a statement.

"We're focused on helping customers get more value from their everyday spending," Anand said.

"Kard has built advanced capabilities that complement our vision for the future of commerce and loyalty. 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."

The comments suggest Citi sees the deal as part of a broader effort to make rewards programmes more central to customer retention and card usage. Rewards remain a key competitive tool among card issuers, particularly in the United States, where banks compete heavily on cashback, points, travel benefits and retailer-linked incentives.

For Kard, the agreement would place its technology inside a much larger banking platform. Ben Mackinnon, Founder and Chief Executive Officer of Kard, said Citi's customer base would extend Kard's original model's reach.

"Joining forces with Citi marks an exciting new chapter for Kard, our team and our customers," Mackinnon said.

"I started Kard with the goal of building more rewarding experiences for consumers. Now being able to do that for Citi's 70 million cardmembers, on top of the millions we support today, accelerates that original vision towards building the future of commerce."

The companies also disclosed advisory roles on the deal. Keefe, Bruyette & Woods, a Stifel company, acted as exclusive financial adviser to Kard, while Sullivan & Cromwell advised Citi and Latham & Watkins advised Kard.

Citi operates in more than 180 countries and jurisdictions, with activities spanning institutional banking, wealth management and consumer banking. In the United States, cards remain one of its most visible consumer businesses, making the Kard acquisition a targeted addition to a core product line rather than a broader diversification move.

Kard is backed by investors including Underscore Ventures, Fin Capital and Tiger Global.