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Marqeta and Credi2 Team as BNPL Demand Grows


Marqeta has teamed with Credi2 to launch an installment payment platform for European banks.

The partnership, announced Wednesday (Nov. 22), combines Credi2’s embedded lending platform with Marqeta’s card issuing offering, and comes amid a boom in popularity for installment offerings like buy now, pay later (BNPL).

“Launching new payments solutions is incredibly time-consuming and complex, not to mention the stakes are incredibly high when dealing with stringent regulatory requirements and cross-border payments,” Marqeta Chief Revenue Officer Todd Pollak said in a news release.

“With Marqeta and Credi2, our bank customers will be able to focus on creating a delightful experience for their customers that gives them greater flexibility, while we navigate the complexities on the backend.”

According to the release, the partnership will let banks go to market more quickly with an installment solution for their debit and credit card cardholders.

And by integrating payments with the banks’ apps, cardholders will gain more flexibility and be able to make installment payments online and in-store, with the option to pay in installments either before or after the purchase is made.

The partnership is happening at a moment when BNPL use has surged in popularity. For example, this month will likely see BNPL levels reach a record $9.3 billion.

“The economic pain of high interest rates and inflation drives consumers to explore alternatives to traditional credit solutions,” PYMNTS wrote Wednesday.

“BNPL is evolving beyond a mere payment alternative to become a crucial yet practical solution for helping to manage personal finances.”

As that report notes, high inflation and rising costs have led consumers to embrace BNPL more as it offers greater affordability, and an alternative to high-interest credit card debt.

“But as it can aid consumers in need, it can also have its pitfalls,” the report continued. “Financially vulnerable consumers or those with credit card debt who use BNPL could worsen their situation. Regulators must work to warn consumers and protect them from financial ruin.”

Marqeta’s team-up with Credi2 follows a collaboration last month with Scalapay to expand BNPL use in Europe, with the firms working to issue virtual cards for online and in-person transactions.

Marqeta noted in a news release that its in-house survey found that one-third of consumers the company surveyed prefer BNPL over credit cards.