JP Morgan is teaming up with Marqeta, a Bay Arena startup, to replace some of its plastic credit cards with the digital-only credit cards, media reports said. The partnership comes at a time when the investment banking behemoth has managed to stay on track amid Covid-19 pandemic.
John Skinner, head of commercial cards at JPMorgan, told the media, “This is another way of getting virtual company cards into the hands of those who need them very quickly. 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.”
The new development will allow the card holders of JP Morgan to use the new facility in mobile wallets for payment options including Apple Pay or Samsung Pay.
Virtual cards are mostly used by contract workers, but the new launch will change the phase of online payment because more than 1 billion people are expected to use virtual cards instead of physical cards for transactions this year onward.
Mr. Skinner added that the virtual card will not only benefit people working from home but will also assist those who do not have access to their offices or addresses where a card might arrive.
On the other hand, Marqeta’s approach to making revenue is the same as companies such as MasterCard and Visa. The company raised $150 million from an undisclosed investor in May.