(Bloomberg) -- JPMorgan Chase & Co. will introduce a credit card with Instacart later this year, the first foray into grocery for the country's largest co-brand credit-card issuer.
The card will operate on Mastercard Inc.'s network, all three companies said Wednesday in a statement. The firms didn't disclose what rewards would be offered.
Activity on Instacart boomed during the pandemic's widespread lockdowns, as consumers looked to the grocery-delivery startup for help with stocking up on everyday items. The app is among brands looking to make a foray into co-brand credit cards.
“We get pitched all kinds of concepts for co-brands in every category you can imagine,” Ed Olebe, president of JPMorgan's co-brand cards business, said in an interview. “Does it make sense? Does it fit? Can you integrate this thing into the core experience as opposed to feeling awkward or pitching something that doesn't make sense? This fits those criteria very well.”
Spending on JPMorgan's credit cards soared 27% last year as a widespread vaccination push allowed consumers to resume travel and dining out after the lockdowns. In the final three months of the year, JPMorgan overtook rival Citigroup Inc. as the world's largest credit-card issuer by balances as such loans jumped 5% in the quarter.
The firm already partnered with Instacart to offer limited-time deals to cardholders. With the new card, it's hoping to lure longtime fans of the grocery delivery service to its ranks.
“It's a powerful way for Instacart to engage new customers and enhance the experience for existing ones,” said Sherri Haymond, executive vice president of digital partnerships at Mastercard.
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