Chase Partners with Marqeta to Launch Virtual Credit Cards
Chase is getting into the virtual credit card business. Largest credit card issuing bank in the country, with about 92 million physical cards in circulation, is partnering with Bay Area start-up Marqeta to now launch digital-only credit cards. The new function will allow Chase cards to work in mobile wallets such as Apple Pay or Samsung Pay immediately, without needing a physical version of the card.
Using a card right away is actually an option already for Chase. You can add Chase cards to your digital wallet and start using it to pay in stores, online and in merchant apps as soon as you are approved for a new card. You do not need to have the physical card in hand, or the credit card number itself.
The new digital-only credit card option will become available in 2021 and initially will be for commercial cards only. It’s not clear if the bank has plans to expand to its consumer cards, CNBC reports.
Marqeta provides the same technology for DoorDash and Instacart, which issue virtual cards to delivery workers to pay for groceries or takeout orders in person. Square also uses Marqeta for a virtual debit card launched through Square Cash and for a plastic debit card it launched this year. Marqeta is similar to other payment processing networks like Mastercard and Visa and takes a percentage from transactions and some other fees.