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Two of the largest providers of Merchant Funded Discount Networks announced a merger deal today that will preserve the Cartera Commerce brand (recently changed from Mall Networks) and CEO. The relative strengths of each provider (Vesdia is particularly strong with in-store discounts and Cartera with online discounts) will complement each other. Merchant Funded Discounts are used by many debit card issuers to support rewards programs and could take on greater prominence in the post-regulatory landscape. Terms of the merger deal were not disclosed.
The combined company is now the industry’s top provider of multi-channel merchant networks and performance advertising solutions, with an advertising reach of more than 150 million consumers and a blue-chip client roster, including 4 of the top 5 U.S. card issuers and 3 of the 4 largest U.S. airlines. The combined company will retain the Cartera Commerce brand and will be headquartered in Lexington, MA with significant operations in Atlanta, GA.
“There is unprecedented market demand for multi-channel merchant networks, performance advertising and transaction marketing solutions, especially given the impact of the Durbin Amendment on debit card interchange fees,” said Tom Beecher, president and CEO of Cartera Commerce. “With more comprehensive solutions, a larger merchant network and greater overall scale, the merger of Cartera and Vesdia allows us to fully capitalize on this compelling market opportunity, driving incremental revenue for merchants, banks and loyalty programs.”
The merger will create significant benefits for clients and partners of both companies, including:
• Largest Merchant Network and Offer Inventory: More than 3,000 national, regional, local and online merchant partners, including the industry’s best inventory of “always-on” brick-and-mortar rebate offers, and access to over 75,000 local coupons.
• Product Leadership and Innovation: A best-in-class multi-channel shopping and transaction marketing platform featuring a compelling, personalized user experience and targeted offer delivery across multiple digital marketing channels including mobile, web, online banking statements, email, social media and browser apps.
• Scale, Investment and Growth: The consumer reach, network scale and combined resources needed to optimally develop and service client and merchant partnerships, while accelerating innovation and expansion.