Capital One purchased Wikibuy, a 4-year-old tech start-up based in Austin, Texas used to check prices on Amazon. Millions of online shoppers use Wikibuy when shopping online to get coupon codes, find cheap deals, and receive loyalty points.
In its attempt to increase loyalty from credit card holders, the bank bought the Austin-based start-up. The executives from both Capital One and Wikibuy did not disclose the amount involved in the purchase.
Clienteles of banking institutions have become used to digital items. As a result, banks have been acquiring financial technology firms to offer them better service. In the case of Capital One, the acquisition is another strategy to help customers save money and time when online shopping. The bank also bought Paribus in 2016. Paribus is an app used to track prices and negotiate refunds if an item’s price drops immediately after purchase. Moreover, the company created Second Look, a tool used to cut down on fraudulent and accidental transactions.
According to Capital One executive Joseph Poellnitz, the bank required a tool to help their customers compare prices before purchase. They approached Wikibuy early this year regarding a partnership which eventually concluded in this month’s acquisition. The procurement was right on time for Cyber Monday on November 26, when online vendors offer deals for shoppers.
Capital One has invested a great deal on online shopping as it plays growing importance to their clients. Poellnitz said that they are always searching for ways to solve the daily issues of the online shopping experience.
If the bank can predict the customers’ needs and provide the technology to solve them, clients are more inclined to stay loyal. Capital One is popular in the financial industry for its progressive thinking when it comes to technology. In January, the Virginia-based bank bought technology firm Notch to fast-track the placement of machine learning for the company’s card customers.
Next to J.P. Morgan Chase and Citigroup, the third-largest credit card issuer in the United States is Capital One
What’s In Store
Co-founded by Jonathan Coon and Walt Roloson in 2014, Wikibuy will keep its headquarters in Austin, Texas. According to the notice posted on their website’s blog, the entire team of Wikibuy will also be joining the bank.
Poellnitz said that Capital One will let Wikibuy remain separate before potentially incorporating the product more with offerings for the digital market. In the meantime, Wikibuy can focus on expanding their offering to more customers.
Adam Gauvin, co-CEO and president of Wikibuy, said that members typically utilize the service to check the prices on Amazon. Wikibuy automatically finds the lowest prices, discount coupons, and loyalty rewards while customers shop online. Gauvin also mentioned that this year, two million Wikibuy members saved over $50 million with help from each other.
Majority of purchases made on the internet is through Amazon, said Gauvin. Amazon is definitely a leading force when it comes to online shopping, and they hold record prices for most people. However, there are also other sites wanting to compete in the online market, and they often have other offers, too.