Varo Bank inks five-year issuer processing deal with Marqeta
US challenger Varo Bank has designated Marqeta as its primary issuer processor for the next five years.
Varo Bank names Marqeta as primary issuer processor
The card issuing platform says the deal is the result of its ability to “combine sophisticated virtual, tokenised and physical card-issuing technology with faster speed-to-market”.
With this, the partnership is set to enable Varo cardholders to add tokenised cards to their Apple and Google Wallets, thereby further securing the process of completing digital transactions.
“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,” comments Colin Walsh, CEO of Varo Bank.
“This advancement aligns perfectly with our mission of financial empowerment,” he adds.
The development could prove to be a valuable aid in the challenger’s pursuit of tipping into profitability. Walsh previously disclosed to The Financial Brand in March that he believes 2024 will be the year this feat is finally achieved for Varo Bank.
“We have more runway in front of us yet, in terms of business maturity,” he reportedly told the outlet, adding that if profitability is reached this year, “we’ll want to continue to scale and show predictable results before going into the public markets”.
Launched in 2017, Varo Bank operates an entirely digital banking platform through which it provides fee-free current accounts, savings accounts, credit cards, cash advances, lines of credit, and instant payment solutions.
It joins a growing list of financial institutions leveraging the Marqeta platform to instigate their own card programmes, including digital commercial bank OakNorth, which announced its partnership with the fintech in April this year to launch a new card programme for its business banking clients.
