Marqeta Secures Five-Year Agreement with Varo Bank to Serve as Exclusive Issuer Processor in the US

Date – 06-Aug-2024

Varo Bank has chosen Marqeta as its issuer processor to support its mission of advancing financial inclusion and opportunity for all.

Marqeta, the leading global card issuing platform for embedded finance solutions, has announced a five-year agreement with Varo Bank, N.A., the U.S.’s first nationally-chartered consumer techbank. Under this deal, Marqeta will serve as Varo Bank’s exclusive issuer processor.

Varo Bank, known for its suite of services including fee-free checking, extensive ATM access, cash advances, credit-building cards, instant payments, and high-yield savings, boasts over five million cards in circulation. Marqeta was chosen for its advanced technology in virtual, tokenized, and physical card issuing, as well as its ability to accelerate time-to-market, enhancing Varo’s ability to offer a seamless financial experience.

Through its mobile app, Varo Bank empowers customers to manage their finances effectively, supporting their financial health and progress. With Marqeta’s platform, Varo will also offer digital wallet tokenization via Apple and Google Wallets. As the first consumer techbank in the U.S. with a national charter, Varo is setting a new standard in financial services.

According to Marqeta’s 2024 State of Payments report, there is a growing trend among consumers towards digital-only or non-traditional banking options. Over half of U.S. consumers have switched their primary bank, with many seeking improved mobile app experiences.

“We needed a partner that aligns with our dual role as a technology innovator and a regulated financial institution,” said Varo Bank CEO Colin Walsh. “Marqeta’s cutting-edge card issuing technology will significantly enhance our customer experience and support our mission of financial empowerment.”

Simon Khalaf, CEO of Marqeta, added, “We are excited about this partnership with Varo Bank, which shares our commitment to leveraging the latest in payments and banking technology. Together, we will innovate to provide real-time transaction visibility and enhanced financial management for Varo’s customers.”