McDonald's Will Continue to Scale and Integrate
the Technology to Further Enhance Customer Experience
Complementary Offering Provides Additional
Mastercard Value Beyond the Transaction
Mastercard (NYSE: MA) and McDonald’s (NYSE: MCD) today announced
an agreement for Mastercard to acquire McDonald’s state-of-the-art
personalization platform and decision engine company, Dynamic
Yield. Dynamic Yield’s technology is a natural addition to
Mastercard’s existing suite of services that help brands deliver
more effective and trusted customer experiences across
channels.
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Sitting across online and offline channels to personalize a
consumer’s experience with a brand, Dynamic Yield delivers
individualized product recommendations, offers and content based on
a range of factors, including past purchases, page views, time of
day, current store traffic and trending products. The
software-as-a-service (SaaS) platform uses advanced AI and other
technologies to support 400+ brands across the retail, financial
services, travel and restaurant industries, among others.
”The notion of going into a store or opening a webpage to find
an experience perfectly tailored to you is no longer farfetched.
It’s a reality that more brands are deploying and more consumers
expect. With Dynamic Yield’s expertise and our scale and
relationships, we’ll be able to bring the connections between the
end consumer and our customers to new heights,” said Raj Seshadri,
President of Data & Services, Mastercard.
Mastercard plays a central role in enabling trusted digital
commerce experiences, connecting billions of consumers with
millions of merchants and banks around the world safely and
securely. With Dynamic Yield’s technology, Mastercard will be able
to help its customers and partners meet consumers’ growing demand
for a more personalized experience, no matter where they shop or do
business. The creation of a unified consumer engagement and loyalty
hub will further extend the value of Mastercard’s network to
deliver digital services for payments and beyond.
This builds on the company’s long track record of providing
data-driven loyalty, analytics and marketing services, rooted in
focused data responsibility principles. This includes the SessionM
merchant loyalty platform and Test & Learn (APT)
experimentation software.
McDonald’s purchased Dynamic Yield in 2019, becoming one of the
first brands to integrate decision technology into its restaurants.
Under McDonald’s ownership, Dynamic Yield doubled its revenue and
expanded its customer base across verticals. To date, Dynamic
Yield’s technology has been deployed to McDonald’s drive-thrus and
ordering kiosks in several markets around the world.
The deployment and enhancement of this technology has been an
important component of McDonald’s Accelerating the Arches growth
strategy under which the brand has also prioritized improving
ordering experiences, introduced a global loyalty program and
expanded its delivery footprint. The acquisition by Mastercard will
strengthen unique, existing synergies across McDonald’s digital
engagement experiences currently powered by SessionM and Test &
Learn. In addition, McDonald’s plans to further scale and integrate
Dynamic Yield’s capabilities globally and across ordering
channels.
“We’re delighted to continue working with McDonald’s, a
longstanding client and proven innovator in this space,” Seshadri
continued.
In addition to McDonald’s, a number of merchant and financial
services brands already use both Dynamic Yield and existing
Mastercard services. Synchrony has worked with both companies on
digital customer engagement. “Synchrony works hard every day to
deliver simple, tailored and relevant interactions to enhance the
consumer experience,” said Jeff Brousseau, Senior Vice President,
Performance Marketing, Synchrony. “With Dynamic Yield, we’ve been
able to deliver contextual, personalized experiences across the
consumer journey. Combining this with the power of Mastercard’s
other digital services unlocks additional capabilities to further
enrich consumer engagement.”
The transaction is anticipated to close in the first half of
2022, with the strength and talent of the extended Dynamic Yield
team ensuring consistency for its customers throughout the process.
Upon close, current chief technology officer Ori Bauer will take
the helm as CEO. Liad Agmon, current CEO, will stay on in an
advisory capacity.
The transaction is subject to customary closing conditions.
Terms of the agreement were not disclosed.
About Mastercard
Mastercard is a global technology company in the payments
industry. Our mission is to connect and power an inclusive, digital
economy that benefits everyone, everywhere by making transactions
safe, simple, smart, and accessible. Using secure data and
networks, partnerships and passion, our innovations and solutions
help individuals, financial institutions, governments, and
businesses realize their greatest potential. Our decency quotient,
or DQ, drives our culture and everything we do inside and outside
of our company. With connections across more than 210 countries and
territories, we are building a sustainable world that unlocks
priceless possibilities for all. www.mastercard.com
About McDonald’s
McDonald’s is the world’s leading global foodservice retailer
with nearly 40,000 locations in over 100 countries. 93% of
McDonald’s restaurants worldwide are owned and operated by
independent local business owners.
About Dynamic Yield
Dynamic Yield helps enterprise brands quickly deliver and test
personalized, optimized, and synchronized digital customer
interactions. Marketing, Product, Development, and eCommerce teams
from more than 400 global brands are using Dynamic Yield’s
Experience Optimization platform as the technology layer that works
alongside existing CMS, Commerce, or ESP solutions to iterate
faster and algorithmically match content, products, and offers to
each individual for the acceleration of long-term business
value.
Forward-Looking Statements
This press release contains certain forward-looking statements,
which reflect expectations regarding future events and operating
performance. Forward-looking statements involve a number of risks
and uncertainties. The factors that could cause actual results to
differ materially from expectations are detailed in Mastercard’s
and McDonald’s filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date they are made,
and neither Mastercard nor McDonald’s undertakes any obligation to
update such forward-looking statements except as may otherwise be
required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211221005354/en/
Mastercard Investor Relations: Jud
Staniar, investor.relations@mastercard.com, 914-249-4565
Mastercard Communications: Seth Eisen, seth.eisen@mastercard.com,
914-249-3153 McDonald’s Communications: Lauren Altmin,
lauren.altmin@us.mcd.com
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