Varo Bank selected Marqeta as its issuer processor to help achieve its mission of bringing financial inclusion and opportunity for all
Marqeta, the global modern card issuing platform that enables embedded finance solutions for the world’s innovators, today announced it has signed a five-year deal with Varo Bank, N.A., the first nationally-chartered consumer techbank in the U.S., 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, with over five million cards in-market. Varo selected Marqeta for its ability to combine sophisticated virtual, tokenized and physical card-issuing technology with faster speed-to-market which will help its customers improve their daily relationship with money.
Through its mobile app, Varo’s innovative financial platform empowers customers, improves their financial health and helps them make real progress with their money. With Marqeta’s platform, Varo will also enable digital wallet tokenization 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 U.S.
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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.
“We sought an issuer partner that complements our unique position as both a technology company and a regulated financial institution,” said Varo Bank CEO Colin Walsh. “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.”
“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, 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.”
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