Instacart will be working with J.P. Morgan for a new card that plans to reward frequent users. DoorDash received offers from 10 banks or FinTechs to help with its card, according to WSJ.
As both companies have received newfound popularity because of the pandemic, which forced everyone to stay inside in the early days and primarily order food from mobile apps, they’re now looking to capitalize on the demand even as businesses start to open back up. They hope the cards will help engage users and attract new ones, WSJ reported.
Banks, meanwhile, see new partnerships as ways to diversify, according to WSJ. Travel rewards, which banks had featured prominently pre-pandemic, have fallen out of favor as travel stopped. The co-branded cards for airlines or hotels used to draw affluent customers who also tended to spend a lot.
J.P. Morgan has been notoriously particular about who it partners with, and many of its partners are airlines or hotels, WSJ reported. The company deciding to partner with delivery companies may signal an openness to new directions.
The Instacart card likely won’t launch until next year. The plan for that card will see users likely earning 5 percent cash back on Instacart purchases, WSJ reported, citing unnamed sources.
J.P. Morgan is also bidding for the DoorDash card, according to WSJ. Other bids include one from FinTech company Deserve, which would be working with Marqeta, another FinTech. DoorDash will likely choose its issuer in a few weeks.
Instacart called 2020 its busiest year ever since it started eight years ago, and as such, gave its gig work “shoppers” bonuses of $50 to $500 to thank them for the work they had done all year, PYMNTS reported.
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