FinTech: Marqeta to Power JP Morgan’s Virtual Cards Program
Instant issuance of virtual cards into mobile wallets.
Marqeta, a global card issuing platform, will provide its card tokenization capabilities to JPMorgan Chase’s (NYSE: JPM) virtual card program in 2021. The bank would, therefore, be able to issue its virtual cards into the mobile wallets of its commercial card clients. (American Banker)
In a digital environment rife with fraudsters, consumers are taking increasing recourse to virtual cards that cannot be hacked. Additionally, companies are using these as a means of payment because of their speed, flexibility, and the aforesaid security advantages.
According to Marqeta’s projections, virtual card usage has more than doubled since 2015. Further, within the next five years, their volume may touch half a trillion dollars, from its current size of $200 billion.
Meanwhile, mobile wallets are catching people’s fancy, and according to Marqeta, more than one billion people would make a payment using a mobile wallet in 2020.
In 2016, Marqeta innovated technology to integrate a virtual card into mobile wallets by tokenization.
“Our card tokenization technology powers instant issuance into mobile wallets and can now be integrated with existing card processing capabilities,” said Omri Dahan, Chief Revenue Officer at Marqeta in a statement. “This opens up huge new possibilities for companies looking to streamline payments and provide innovative services to their people. To bring this product to a company of J.P. Morgan’s scale and have it utilized in a new way is tremendously validating of its market potential.”
“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,” said John Skinner, Head of Commercial Card at J.P. Morgan.
In May this year, the fintech raised an additional $150 million in new capital from a leading institutional investor, valuing the company at $4.3 billion.
This financing followed after Marqeta’s previously announced $260 million equity financing in May 2019. The round was led by Coatue and included participation from Vitruvian Partners and several others.
Marqeta also has backing from Visa (NYSE: V), Goldman Sachs (NYSE: GS), 83North, Granite Ventures, and ICONIQ Capital.
Image Of Marqeta Credit: Google Maps
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