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Instacart gathers all your shopping under one easy-to-use umbrella — and it will soon have its own credit card.
Instacart is the leading online grocery platform in North America.
Instacart and Chase are launching a co-branded credit card later this year.
The card will offer accelerated points on Instacart purchases, among other perks and rewards.
Read Insider’s guide to the best rewards credit cards.
If you’re unfamiliar with Instacart, it’s an online grocery shopping platform that allows you to order pickup or delivery from nearby locations.
Participating Instacart stores include Kroger, ALDI, Meijer, and Costco — and the site now supports non-food stores such as Best Buy, Dick’s Sporting Goods, and Bed Bath & Beyond. You can find more than 700 grocers and retailers through Instacart.
Read more: How does Instacart work? What to know about the grocery delivery service powered by freelancers
Coming later this year, Chase and Instacart are unveiling a brand new co-branded credit card — the Instacart Mastercard® credit card. It’s always good news to hear of a new credit card on the market — though we know relatively little about this card’s inner workings.
We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
New Chase Instacart credit card
You may have noticed Chase and Instacart working together sporadically over the past couple of years. There are occasional discounts via Chase Offers. There’s currently a promotional Instacart Express membership for customers with select Chase cards, including $10 off your next order of $35+, through April 2022, when you enroll by January 31, 2022 (you can register here).
The partnership was a foreshadowing of what was to come: a bona fide co-branded credit card. Chase hasn’t revealed important details of the card, such as its annual fee, earning rates, and rewards currency. It only states that it will offer “accelerated points on Instacart purchases, among other perks and rewards.”
If the card’s earning rates are impressive, this could be a product worth considering as it aggregates several hundred merchants under one platform. However, purchases through Instacart code as grocery stores with most credit card issuers like American Express and Chase. That means the Chase Instacart credit card will need exceptional earning rates, along with perhaps Instacart credits and Instacart Express membership to challenge competitors.
Read more: The best credit cards for buying groceries
For example, the Blue Cash Preferred® Card from American Express earns 6% back on the first $6,000 spent at supermarkets each calendar year (then 1%). Using this card to purchase groceries through Instacart should net you 6% back.
Or, the American Express® Gold Card earns 4 Amex Membership Rewards points per dollar at supermarkets (on up to $25,000 spent at U.S. supermarkets each year, then 1 point per dollar). Insider estimates Amex points value to be 1.8 cents each — giving you an effective return rate of around 7.2% toward travel.
This card will be a World Elite Mastercard, so it may come with standard World Elite benefits such as:
Rental car elite statusCellphone protectionWorld Elite ConciergeFree Shoprunner membership
Issuers sometimes opt-out of certain perks offered by the payment processing networks, however. We don’t know for sure what this card’s suite of benefits will look like.
The Chase Sapphire Preferred is currently one of the best credit cards for grocery spending
Chase already has a great option for supermarket spending.
The Chase Sapphire Preferred® Card earns 3 Chase Ultimate Rewards points per dollar for online grocery purchases (excluding Target, Walmart, and wholesale clubs). Insider estimates Chase points value to be 1.8 cents each. That means if you use this card through Instacart, you should receive effectively 5.4% back toward travel.
This card also offers Chase Sapphire Preferred® Card after spending $4,000 on purchases within the first three months from account opening. It comes with valuable travel benefits like primary rental car insurance, trip delay insurance, and baggage delay insurance.
We frequently recommend the Chase Sapphire Preferred® Card as the best beginner travel points credit card. And because it has a high earning rate for grocery spending, its utility is greater travel alone.
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