Affinity Capital Exchange teams up with J.P. Morgan to enhance value of loyalty programs

By Pavithra R

New York-based Affinity Capital Exchange, a FinTech innovator in the loyalty finance space pioneering a new class of loyalty points has announced that the firm has entered into an agreement with J.P. Morgan to work together to provide issuers of loyalty programs the capability to augment secured debt financing by deploying a new class of loyalty points.

“We are always looking for innovative ways to help our clients think strategically about their businesses and create value. 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,” said Jim Casey, Global Co-Head of Investment Banking, J.P. Morgan.

J.P. Morgan by leveraging ACE’s proprietary technology will offer clients a way for securing and enhancing loyalty financing by using Reserve Points, a standardized loyalty points. ACE has developed the structure behind these points, allowing loyalty programs to issue points that can be exchanged for any type of point within its program. These standardized loyalty points, over time, are expected to benefit the operating partners in addition to the issuer.

“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. 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,” said Atanas Christov, Founder and CEO of ACE.

Founded in 2015, Affinity Capital Exchange (ACE) is a platform specifically designed for institutional loyalty players to optimize loyalty program economics. The company facilitates issuance and trading of points between loyalty industry participants, partners and investors via Point Backed Securities (PBS).