Acquiring the travel, entertainment and shopping concierge service may advance the bank's interest in having customers use credit card points
Capital One has agreed to buy Velocity Black, a digital concierge service, to bolster its offerings for consumer experience, the bank announced last week.
The move gives Capital One access to a proprietary platform — focused on travel, entertainment, shopping and dining — that uses artificial intelligence and human expertise to offer recommendations to its customers.
Terms of the deal were not disclosed. Velocity Black’s website said it is backed by $28 million in venture capital.
Some of those experiences include micro-chipping blue whales off Sri Lanka and dining within an Egyptian pyramid, according to Velocity Black’s site.
“Our culture of innovation to delight customers has been key to our rapid growth. We are excited to join forces with Capital One, who shares this passion,” Zia Yusuf, Velocity Black’s CEO, said in a statement.
Bank-owned travel portals have surged to help clients use the miles and points for booking travel on credit cards directly, bypassing online travel agencies and saving money needed for external platforms, according to a PYMNTS report from March.
The Velocity Black transaction piggybacks off other moves Capital One has made to address client needs. The bank launched Capital One Landing in October. The service offers a revamped airport lounge experience.
Capital One also acquired the online shopping tool business Wikibuy to power its shopping experience offerings — matching premium retailers with shoppers to help engage and drive financial benefits. The bank also collaborated with restaurant reservation tool firm SevenRooms to develop Capital One Dining, which offers access to hard-to-get reservations, the company noted.
Capital One isn’t the first bank to expand its presence in the restaurant or travel and expense management business. In September 2021, JPMorgan Chase agreed to buy the restaurant platform The Infatuation, which owns the Zagat guidebook and review brand. Two months later, U.S. Bank announced plans to buy San Francisco-based fintech TravelBank in a bid to expand its customer base and deliver more value to them, the company said at the time.
By Rajashree Chakravarty on June 8, 2023
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