AUSTIN, Texas (4/3/14)--Discover Financial Services is backing loyalty rewards startup Buzz Points Inc., filling out a $19 million round to bankroll the company as it enters new geographic markets across the country.
Buzz Points is a CUNA Strategic Services alliance provider.
The company, which has raised $26.5 million to date, was valued around $65 million in the recent round, VentureWire reported. The company closed the first tranche of the Series D round in September, with lead investor Lead Edge Ventures and participation from existing investors including KEC Ventures and Greycroft Ventures.
Backing Buzz Points is a relatively rare event for the credit card and e-payments company compared with its active venture counterparts at Visa Inc. and Citi Ventures, which have each invested in more than a dozen startups including Square Inc. and Platfora Inc.
Founded in 2009 and based in Austin, Texas, Buzz Points offers a reward system for consumers by linking community banks, credit unions and other financial institutions in local communities with their local merchants. When those merchants offer rewards, financial institutions promote them to consumers with the goal of giving them incentive to shift their spending to those linked cards.
Buzz Points changed its name from Fisoc Inc. in late 2013.