Marqeta has signed a five-year deal with Varo Bank to become its issuer processor. 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.
Varo selected Marqeta for 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.
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By GlobalDataVaro’s financial platform aims to help customers improve financial health and make progress with their money
With Marqeta’s platform, Varo will also enable digital wallet tokenisation with Apple and Google Wallets for its cardholders. Varo is the first bank to receive a de novo national bank charter as a consumer techbank in the US.
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, with 51% of US consumers surveyed citing they’ve already changed their primary bank, and an additional 18% of consumers currently considering changing. Additionally, 20% of US consumers surveyed were intrigued by a better mobile app experience in searching for a bank.
Varo Bank CEO Colin Walsh, said: “We sought an issuer partner that complements our unique position as both a technology company and a regulated financial institution. 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.”
Simon Khalaf, CEO, Marqeta, commented: “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. 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.”
