American banking major JPMorgan Chase & Co is reportedly planning to divest the credit card portfolio it built in collaboration with AARP.
Bloomberg reported the development citing people familiar with the matter.
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The divestment will include around $1bn in credit card receivables, according to the report.
Alliance Data Systems, a loyalty and marketing services provider, is said to have expressed interest in buying the portfolio,
The acquisition will bolster private-label credit card and payments businesses of Alliance Data, which sold its Epsilon data unit earlier this year.
However, the entities declined to comment on Bloomberg queries on the move.
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By GlobalDataWith more than 38 million members, AARP is a local non-profit group primary focusing on issues affecting older people.
The JPMorgan’s AARP rewards card provides users with cashback on various purchases. Users received 3% cash back on dining and gas purchases and 1% on other transactions.
For JPMorgan, which is the largest credit card issuer in the US, the AARP credit card portfolio is relatively a small portfolio.
At the end of second quarter, the bank reported $158bn in outstanding card loans.
In May this year, JPMorgan partnered with Bora Payment Systems to support adoption of virtual cards for B2B landscape.
Under the collaboration, Bora’s payment processing platform, called Payer Direct Hub (PDH), will automate delivery of JP Morgan’s Single Use Accounts payments linked to virtual card transaction.
