- Mobile wallets have taken off amid the coronavirus pandemic as a touch-free way to pay.
- Marqeta, the card-issuing platform, is opening up its digital tokenization tech to anyone, broadening the scope of companies that can use Marqeta to issue digital cards.
- Marqeta powers delivery apps like DoorDash and Instacart, as well as peer-to-peer payments platforms like Square’s Cash App.
- Both Square and JPMorgan are already using Marqeta’s tokenization-as-a-service platform.
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Contactless payments have taken off amid the coronavirus pandemic, with consumers seeking out touch-free ways to pay. One of the world’s most valuable fintechs is targeting that trend, looking to help companies distribute digital cards even if they aren’t current customers.
Marqeta, the card-issuing startup last valued at $4.3 billion, announced Tuesday it is now offering its digital card issuance tech to anyone. Described as “tokenization-as-a-service,” any company that wants to be able to issue digital cards can use Marqeta’s platform to do so, even if they’re not already using the startup to issue or process their physical cards.
Tokenization is a critical security element in digital payments. Sensitive information like card numbers are swapped out for other identifiers, or, tokenized.
“Prior to this, we’ve worked primarily with customers where we were issuing the card and processing the cards as well,” Kevin Doerr, chief product officer at Marqeta, told Business Insider. “Now we’ve enabled customers who don’t have that relationship with us to still take advantage of the functionality and services that our API layer presents.”
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Historically, consumers have manually set up their cards on digital wallets after receiving a physical card. But over the past few