Affinity Capital Exchange Announces Strategic Agreement With J.P. Morgan to Enhance Value of Loyalty Programs
01 October 2020 - 9:00PM
Business Wire
Affinity Capital Exchange (ACE), a fintech innovator in the
loyalty finance space pioneering a new class of loyalty points,
today announced that it has entered into an agreement with J.P.
Morgan (NYSE: JPM). The two firms will work together to provide
issuers of loyalty programs the ability to augment secured debt
financing by deploying a new class of loyalty points.
Leveraging ACE’s proprietary technology, J.P. Morgan will offer
clients a new way of securing and enhancing loyalty financing by
using standardized loyalty points, known as Reserve Points. ACE has
developed the structure behind these points, which allow loyalty
programs to issue points that can be exchanged for any type of
point within its program. Over time, these standardized loyalty
points will also benefit the operating partners in addition to the
issuer.
“We are always looking for innovative ways to help our clients
think strategically about their businesses and create value,” said
Jim Casey, Global Co-Head of Investment Banking, J.P. Morgan. “With
ACE, we have the potential to provide our clients and their
operating partners a unique opportunity to generate value together,
while also enabling access to a wider investor base.”
Airlines, hotels, and other loyalty operators will now be able
to strategically utilize the value of loyalty programs to raise
capital from lenders, institutional investors, and operating
partners. In January 2020, industry analysts1 pegged the combined
value of the top 100 airline loyalty programs at approximately
$200bn.
“We are thrilled to work with J.P. Morgan to provide compelling
solutions that match the liquidity needs of loyalty program owners
with the interests of their operating partners and demand from
lenders and investors,” said Atanas Christov, Founder and CEO of
ACE. “Combining ACE’s technology with J.P. Morgan’s global scale
creates an unmatched value proposition for clients, providing
flexible new products that fit the needs of lenders, investors and
operating partners for security in return for fresh liquidity to
critical businesses."
About Affinity Capital Exchange
Based in New York City, Affinity Capital Exchange (ACE) is a
fintech innovator in the loyalty finance space. ACE is building the
world’s first technology solution and venue for the issuance and
trading of a new class of loyalty points, enabling the creation of
financial instruments backed by loyalty point portfolios. Through
financial innovation that is supported by tried-and-tested market
infrastructure and technology, ACE aims to revolutionize the
loyalty economy by bringing the benefits of financial markets to
loyalty in a way that respects the unique needs of the industry.
Its technology and market platform will provide new solutions to
members, initially focusing on generating collateral and attracting
liquidity. For more on ACE, please visit afcx.co
Source: 1OnPoint Loyalty ‘Top 100 Most Valuable Airline Loyalty
Programs’ report, Jan 2020
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version on businesswire.com: https://www.businesswire.com/news/home/20201001005379/en/
Scott Resnick Corporate Affairs, Affinity Capital Exchange
sresnick@afcx.co 646-450-7732
Jessica Francisco Executive Director, Communications, J.P.
Morgan jessica.francisco@jpmorgan.com 201-248-4932
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