Citi, Amex, and Chase leverage transaction data for merchant-funded offers

Major financial institutions, including Citi, American Express, and Chase, are increasingly utilizing merchant-funded offers to influence consumer spending. Citi recently launched Citi Commerce Media, a business designed to leverage its data from 6.5 billion annual transactions across more than 700 categories to identify purchase intentions and present targeted advertisements to customers. This initiative is supported by Citi's planned acquisition of the rewards platform Kard.

While these offers—such as rebates or credits for specific services—are often marketed as cardholder benefits, they serve a strategic purpose for merchants seeking incremental sales. Merchants pay card issuers to reach specific customer profiles, often aiming to attract consumers who currently shop with competitors. However, a study analyzing 96 million credit card transactions has raised questions regarding the actual incremental value provided by these consumer purchase-intent profiles.