Mastercard has recently begun to score more significant card-issuing deals through JPMorgan Chase, including a new partnership for the first-ever cobranded DoorDash credit card.
The agreement, unveiled Tuesday, continues a trend of Mastercard winning more cobrand card programs through Chase after a five-year lull in such deals ended in 2020.
The DoorDash Rewards Mastercard will enable users to earn rewards from orders through the San Francisco-based food-delivery operator and general purchases, but Chase and Mastercard didn't disclose the card's rollout date or other details.
The move by the nation's largest credit card issuer and Mastercard — and its timing — raise a couple of interesting competitive issues.
Visa is Chase's dominant card-issuing partner by a long shot, and if Mastercard hopes to crack Visa's grip on Chase, the DoorDash deal presents a number of advantages, observers say.
When Chase and Mastercard announced the
Also looming on the horizon is the sunset of a
"Visa has clearly benefited from its preferential-pricing agreement over these years with Chase, and while Mastercard may not have that same advantage, it can bring marketing dollars and incentives to the table to sweeten card-issuing deals," said Richard Crone, a principal with Crone Consulting.
DoorDash presents a unique competitive opportunity for Mastercard, too.
Chase last year locked in a
Around the same time last year, Mastercard
The new Chase Mastercard credit card may help DoorDash build more volume as the economy enters an uncertain phase. And as the leading food-delivery provider, DoorDash also is a safe bet for Mastercard to advance its card market share with Chase, if the card's yet-to-be-announced perks stand out.
"More than half of U.S. households have a Visa credit, debit or prepaid card, and as the dominant leader in North American card, all Mastercard can do at this point is chip away at Visa one deal at a time," Crone said.
Chase and Visa did not respond to queries about the status of their 10-year card-processing agreement.
"Chase's deal with Visa has given them an advantage for least-cost card routing, and it's hard to say what will happen when the agreement expires next year," Crone said. "Typically these types of arrangements begin negotiations more than a year in advance, and Mastercard is all over the place with Chase now."
