Previously, Meniga and Wrapp were independently offering transaction-driven rewards - the former in Iceland and the latter in Sweden and Finland.

They will now merge their respective technology and teams into one streamlined offering under the Meniga banner, operating from Stockholm, with Wrapp CEO Aage Reerslev taking on the role of Meniga VP of rewards.

Meniga argues that past spending is the best predictor of future spending, and by employing machine learning technology it can match merchants with consumers in a more effective manner than that offered by traditional marketing platforms such as Google and Facebook.

Through its platform, any merchant can compete for consumer attention through a self-service interface similar to Google and Facebook Ads, but with the ability to offer personalised rewards based on purchase behaviour.

Meniga's model requires scale across bank partners and across borders. The firm counts the two largest banks in the Nordics, Swedbank and Nordea, as shareholders and also has a live network of partners including Danske Bank, Islandsbanki, Länsförsäkringar, Collector, Sodexo and Aktia Bank.

Georg Ludviksson, CEO, Meniga, says: "The attitudes of consumers towards the use of their personal data is changing. Custodians of personal data are expected to use data to deliver personalisation and value in a respectful and transparent manner.

"We believe that banks are in a unique position right now to deliver a compelling proposition to their customers while carving out a meaningful share of the digital advertising market. But banks need to act fast before others beat them to building scale in this space."

Peter Åkesson, head, partnership and M&A in personal banking, Nordea, adds: "Combining Wrapp’s merchant technology and network with Meniga’s advanced segmentation and experience in digital solutions will create a truly compelling offering for banks and merchants."