jpmorgan chase featured image
Banking & Finance News Stories Technology

Virtual Credit Cards: JPMorgan Chase Partners with Marqeta

JPMorgan Chase is partnering with fintech start-up Marqeta to launch digital-only credit cards.

Virtual cards and contactless payments have seen a spike in use during the coronavirus pandemic. The new functionality allows JPMorgan corporate cards to work in mobile wallets such as Apple Pay or Samsung Pay.

“These big financial institutions are tied to the legacy systems that they’ve built on top of for years, it’s hard for them to access modern technology,” said Marqeta Chief Revenue Officer Omri Dahan.

“We are able to give them access to that, without a massive lift on their part,” he added.

Marqeta makes money in a similar way to incumbents Mastercard and Visa — by taking a percentage cut of every transaction from customers, and some software fees.

Marqeta’s tokenization technology is used by companies such as Instacart and DoorDash, who gig workers use the cards to pay for groceries or takeout orders.

According to John Skinner, Head of Commercial Cards at JPMorgan Chase, “Marqeta’s push to wallet functionality will add a new dimension to virtual card payments. With Marqeta, our virtual cards can be expanded to new use cases like facilitating payments to disaster relief volunteers or for recruitment spend where interview candidates can be issued a card into their mobile wallets for travel expenses.”

“We know there’s a need for this product — what COVID has taught us is that there are more use cases for this than we imagined,” Skinner added.

The said feature will be available in early 2021, and only for commercial cards.