Marqeta to provide tokenization for JPMorgan virtual cards
The global card issuer Marqeta will provide its tokenization technology for JPMorgan Chase's virtual card program in early 2021.
The tokenization process — which substitutes a card account number with unrelated characters as a way to frustrate fraudsters — will integrate into JPMorgan's existing systems and allow the bank to instantly issue virtual cards into mobile wallets for commercial card clients.
"We're excited to work with JPMorgan, helping them layer card tokenization capabilities into their existing commercial card programs," Omri Dahan, Marqeta's chief revenue officer, said in a press release Tuesday. "This opens up huge new possibilities for companies looking to streamline payments and provide innovative services to their people."
Two years ago, JPMorgan turned to the payment processor TSYS to utilize its technology for establishing virtual cards in its commercial portfolio.
Virtual card use is a more than $200 billion market, and eMarketer projects it will grow by 20% annually through 2021. Marqeta, of Oakland, Calif., says its ability to provide instant tokenization for mobile wallets will change how these cards are issued.
"Marqeta's push-to-wallet functionality will add a new dimension to virtual card payments," John Skinner, head of commercial card at JPMorgan Chase, said in the release. "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."