JPMorgan Chase is dumping plastic for some of its credit cards.
The Wall Street giant’s business cards team is partnering with Bay Area start-up Marqeta to release digital-only charge card. The new function will allow JPMorgan business cards to operate in mobile wallets such as Apple Pay or Samsung Pay right away– without needing to wait for a physical version in the mail.
“This is another way of getting virtual company cards into the hands of those who need them very quickly,” John Skinner, head of commercial cards at JPMorgan, told CNBC in a phone interview. “We know there’s a need for this product — what Covid has taught us is that there’s more use cases for this than we imagined.”
This kind of immediate, “virtual” card has traditionally been used for gig-economy, or contract employees who might need to pay expense but would not get approved for a business card. The digital variation can also put certain costs specifications and daily overalls, in addition to constraints on where an employee can spend.
However as lots of Americans work from home during the pandemic, Skinner stated it might likewise assist those who do not have access to their offices, or main address where a corporate card may generally get here. Plus, the pandemic has actually accelerated the adoption of digital payments and contactless payments, upping the appeal for digital cards.
Skinner stated the feature will be available in early 2021, and just for commercial cards. He did not say if the bank has plans to broaden to its Chase, customer side.
Marqeta supplies the same innovation for DoorDash and Instacart, which provide virtual cards to delivery workers to pay for groceries or takeout orders personally. Square also utilizes Marqeta for a virtual debit card launched through Square Cash and for a plastic debit card it unveiled in January.
JPMorgan has a history of partnering with, and buying up fintech companies. It got Silicon Valley-based start-up WePay in December 2017. In this case, Marqeta chief earnings officer Omri Dahan stated it would have taken years for the Wall Street giant to develop a comparable item in-house.
“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,” Dahan told the media. “We are able to give them access to that, without a massive lift on their part.”
Marqeta earns money in a similar way to incumbents Mastercard and Visa– by taking a portion cut of every deal from customers, and some software application charges. The company would not talk about the financial details of the JPMorgan agreement.