JPMorgan Chase is introducing a new way to issue corporate cards. The bank is now partnering with Marqeta, a Bay Area FinTech company, to launch digital-only credit cards. This announcement may have a significant impact on the future of plastic credit cards. Here’s what you need to know.
Chace Partnering with Fintech Start-Up
JPMorgan Chase is one of the biggest names in the corporate credit card industry. Now, the bank is partnering with FinTech card issuing and payments solution company, Marqueta, to launch digital-only corporate credit cards.
The new technology will have benefits versus traditional plastic credit cards. Chief among these advantages is the ability to instantly use the card through mobile wallets, such as Apple Pay, Google Pay, and other services.
“Getting Cards Into the Hands of Those Who Need Them”
The move towards digital corporate cards was explained to CNBC in an interview with JPMorgan Chase’s Head of Commercial Cards, John Skinner. “This is another way of getting virtual company cards into the hands of those who need them very quickly,” he said in the interview. “We know there’s a need for this product — what Covid (sic) has taught us is that there are more use cases for this than we imagined.”
The Future of Credit Cards?
Immediate access cards aren’t new. Virtual cards have long been popular in the gig economy. They provide instant access to those who may need to pay expenses but can’t get a corporate card.
The move to shift corporate cards to this model, however, is new. It also has interesting implications for future credit cards for all consumers.
Mobile wallets are gaining popularity – especially as more merchants feature point of sale terminals that make contactless payments possible. The coronavirus pandemic is further strengthening the appeal of contactless payments, both from a health and an ease-of-use standpoint.
If the Chase-Marqeta partnership is successful, don’t be surprised to see more issuers experimenting with digital-only credit cards in the future – like the Apple Card from Goldman Sachs. Though it does also have a physical card, it is designed to be used primarily with a digital wallet.
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