Instacart issues first credit card
A leading on-demand delivery platform is entering the financial services space.
Instacart is expanding an existing partnership with co-brand card issuer Chase to make Chase the exclusive issuer of Instacart’s first credit card. As a part of this collaboration, Mastercard will become the exclusive payments network for the new offering.
The new Instacart Mastercard credit card will be the first Chase co-branded card offering in the on-demand grocery delivery space. The card will allow consumers to earn accelerated points on purchases across the Instacart marketplace, which today includes more than 700 national, regional and local grocers and retailers.
The card is expected to launch in 2022 and will also offer a number of other benefits, perks and savings. In June 2020, Instacart launched a partnership with Chase that provides limited-time Instacart offers and savings to existing Chase cardmembers.
This new financial services partnership follows a series of moves Instacart made throughout 2021 that strongly suggest it seeks to evolve into a broadly-based tech platform like Amazon, Apple., Google, and Facebook (all of those companies are active in the digital payment space). In January 2021, Instacart introduced a new model for its Instacart Pickup curbside service — Partner Pick. In July 2021, the company tapped Fidji Simo, who had been serving as VP and head of the Facebook app, to assume the position of CEO.
July also saw Instacart unveil the first phase of a new micro-fulfillment initiative, designed to bring automated technology solutions to retailers across the U.S. and Canada. In October, Instacart acquired FoodStorm, an order management system provider whose technology enables end-to-end order-ahead and catering services for grocery retailers.
“Giving people access to the food they love and essentials they need is central to everything we do at Instacart,” said Asha Sharma, COO, Instacart. “With the new Instacart credit card, we’ll be able to deliver even more ways for customers to save as they shop, and make Instacart the most affordable way for people across North America to get the food they want, from the retailers they love, delivered faster than ever before.”
“The adoption of more convenient digital services has accelerated, and consumers’ habits have clearly evolved,” said Ed Olebe, president of Chase Co-Brand Cards. “We are excited to introduce a new category of co-branded cards for Chase through this partnership with Instacart, a true leader in the grocery delivery space.”
“Our lives are more digital than ever, from how we shop to how we work, travel and connect. And consumers' expectations about their experiences with brands are changing. It’s critical that we design and deliver the best payments and loyalty experiences for our cardholders, regardless of where or how they pay,” said Sherri Haymond, executive VP, digital partnerships at Mastercard. “The new Instacart Mastercard is a prime example of the evolution of digital payments– a card tailored to customers, that earns relevant rewards as they live their lives. It’s a powerful way for Instacart to engage new customers and enhance the experience for existing ones.”
The new Instacart Mastercard is a World Elite Mastercard, and will offer cardholders access to World Elite Mastercard benefits, including complimentary 24/7 concierge service and access to Mastercard “priceless experiences.”