BMO will purchase the Air Miles loyalty program, boosting its customer loyalty offerings

BMO Financial Group has made a deal to acquire the Air Miles loyalty rewards program from LoyaltyOne Co. The financial terms of the agreement have not yet been made available. However, according to the president of Air Miles, Shawn Stewart, the deal will not affect Air Miles collectors’ reward miles balances or their ability to collect and redeem Air Miles reward miles. Air Miles is one of Canada’s largest loyalty programs, with almost 10 million active collector accounts, representing about two-thirds of Canadian households. Collectors can earn Air Miles through various means, including retail stores, service locations, and credit and debit cards. The program can be redeemed for ‘aspirational rewards’ like merchandise, travel, events, and attractions. The proposed Air Miles transaction is contingent on LoyaltyOne not receiving a more favourable offer, and will require court approval. BMO has been an Air Miles partner since 1992 and, if the acquisition is successful, will bring the ownership of Air Miles home to Canada. The bank believes that the purchase will accelerate the future growth of Air Miles. Rewards programs have proliferated in recent years as companies seek to learn more about customers and their shopping habits. The mounting value of loyalty programs has prompted some retailers to adopt and expand their own programs.