TransactPay provides bank identification number sponsorship services and is a licensed eMoney institution (EMI) in the U.K. and the European Economic Area, according to a Wednesday (Aug. 6) news release. EMIs are required to issue prepaid and virtual cards in those regions, among other things.
The deal will also strengthen digital payments capabilities for customers in the U.K. and European Union and allow existing customers to move more easily into European markets, the release said.
“In today’s evolving global landscape, from regulatory modifications to rapid economic policy changes, the ability to deliver innovative payments products and scale quickly while staying compliant with requirements across Europe is critical,” Marcin Glogowski, senior vice president and managing director, Europe and U.K. CEO at Marqeta, said in the release. “With the combined capabilities of TransactPay and Marqeta, we’re helping our customers address these fundamental payment needs.”
Marqeta first announced the acquisition in February, at the same time it named Mike Milotich as interim CEO in addition to his role as chief financial officer.
Milotich said during a second-quarter earnings call Wednesday (Aug. 6) that the acquisition would provide a tailwind for Marqeta’s banking, lending, buy now, pay later (BNPL) and expense management use cases, all of which grew more than 100% year-over-year in Europe.
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He added that the deal will “enable us to deliver more program management services for customers operating throughout Europe … [and] position us to support larger customers who are looking to have a single provider for processing, program management and EMI license.”
Marqeta’s Glogowski told PYMNTS in July that while the economic climate presents unique obstacles, the underlying principle for businesses remains adaptation. The key challenge for FinTech innovators is determining which payment technologies or initiatives are suitable for the marketplace and which are best put aside, especially when a business proposition brings inherent risk.
For Marqeta, focused on addressing customer problems at scale, Glogowski said that aside from looking at the potential of new technology, the company tests and assesses inherent risks.
The goal is to ensure that new technology delivers a “secure and stable benefit” to customers, making the stability of their solutions and platforms a priority, he said.
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