Mastercard buys Israeli tech firm Dynamic Yield from McDonald's

Dynamic Yield’s service uses machine learning algorithms to help businesses tailor their website to individual consumers according to behavioral patterns.

Illustration photo of a Mastercard logo on a credit card (photo credit: THOMAS WHITE / REUTERS)
Illustration photo of a Mastercard logo on a credit card
(photo credit: THOMAS WHITE / REUTERS)

Mastercard announced the purchase this week of Israeli company Dynamic Yield from US fast food franchise McDonald’s.

In 2019, McDonald’s acquired the Israeli start-up for $300 million. McDonald’s sold the company to Mastercard.

Dynamic Yield’s service uses machine learning algorithms to help businesses tailor their websites to individual consumers according to behavioral patterns.

The company was founded in 2011 by Liad Agmon and Omri Mendelevich. It now has over 200 employees and is based in Tel Aviv.

“The notion of going into a store or opening a web page to find an experience perfectly tailored to you is no longer far-fetched. It’s a reality that more brands are deploying and more consumers expect.

People wearing face masks are seen outside a McDonald's restaurant in Wuhan (credit: REUTERS)People wearing face masks are seen outside a McDonald's restaurant in Wuhan (credit: REUTERS)

“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 at Mastercard.

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-throughs and ordering kiosks in several markets around the world.

With Dynamic Yield’s technology, Mastercard aims to help its customers and partners meet demand for a more personalized shopping experience. 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.

“We’re delighted to continue working with McDonald’s, a long-standing client and proven innovator in this space,” Seshadri continued.

In addition to McDonald’s, a number of merchant and financial services brands already use Dynamic Yield’s technology.

The transaction is anticipated to close in the first half of 2022, after which current chief technology officer Ori Bauer will take the helm as CEO. Agmon, the current CEO, will stay on in an advisory capacity.