Marqeta, a modern card issuing platform enabling embedded finance solutions for the world’s innovators, has signed a five-year deal with Varo Bank, the US-based consumer digital bank, becoming its issuer processor.
Varo Bank revealed that it selected Marqeta due to its ability to combine virtual, tokenised and physical card-issuing technology with faster speed-to-market which will help its customers improve their daily relationship with money.
Varo Bank offers services such as fee-free checking accounts, free ATM access at over 40,000 locations, cash advances and lines of credit, secured credit-building credit cards, instant payment solutions and high-yield savings accounts to customers, with over five million cards in-market.
“We sought an issuer partner that complements our unique position as both a technology company and a regulated financial institution,” explained Colin Walsh, CEO of Varo Bank. “This partnership with Marqeta enables us to offer cutting-edge card issuing technology, giving our customers enhanced ability to view and manage their transactions efficiently. This advancement aligns perfectly with our mission of financial empowerment.”
Through its mobile app, Varo’s financial platform aims to improve the financial health of its customers. With Marqeta’s platform, Varo will now also enable digital wallet tokenisation with Apple and Google Wallets for its cardholders. Varo becomes the first bank to receive a de novo national bank charter as a consumer digital bank in the US.
Meeting customer expectations
Marqeta’s 2024 State of Payments report found that consumers are open to switching their primary bank to a digital-only or non-traditional offering that’s a better fit for their lifestyle and habits. Fifty-one per cent of US consumers revealed they have already changed their primary bank, while an additional 18 per cent of consumers are currently considering doing the same.
Marqeta also found that 20 per cent of US consumers surveyed were intrigued by a better mobile app experience in searching for a bank.
“Marqeta is proud to announce this deal with Varo Bank, which relies on the latest payments and banking technologies to help Americans who are striving to get ahead,” said Simon Khalaf, CEO of Marqeta. “Varo’s mission is aligned with ours and we can’t wait to start innovating with the Varo team, enabling their customers to see transactions in real-time thanks to Marqeta’s APIs.”