Marqeta Expands Into Consumer Credit Cards

Global card issuing platform Marqeta is growing its business to include consumer credit cards, the company said in a press release on Thursday (Feb. 18). The decision comes on the heels of Marqeta’s confidential filing for an initial public offering (IPO). Marqeta is working with Goldman Sachs and J.P. Morgan Chase on the IPO, which it hopes will be finalized by April.

As part of this new offering, Marqeta will provide its customers with underwriting, compliance and risk management services to help brands develop their own credit card programs. Brands will be able to instantly activate newly approved cardholders and issue a virtual credit card that is sent directly to the cardholder’s digital wallet. 

The company said its credit card issuing platform can now power any type of card, and is teaming with the FinTech Deserve to use its open API platform to manage this program. 

“Expanding the Marqeta platform to service modern innovators building disruptive new credit products establishes us as a truly comprehensive, modern card issuing platform,” said Jason Gardner, founder and chief executive officer of Marqeta, which was launched in 2010 in Oakland, California. 

Gardner added that the past 12 months have shown that digital payments have cemented the company’s future, and are “arriving faster than we could have anticipated.” He said there has been an increasing demand “for seamless and intuitive experiences for any type of payment.”

Marqeta’s anticipated IPO value could hit $10 billion, according to Reuters. The company has benefited from the escalation of digital shopping, delivery and payments processed through its platform. The California startup also raised $150 million in a private fundraising round in May, doubling its valuation to $4.2 billion, TechCrunch previously reported. Mastercard invested an undisclosed amount of money in Marqeta in October 2020. The company’s customer lineup includes Cash App, Affirm, DoorDash and Instacart, among others.

In July, J.P. Morgan aligned with Marqeta in a move toward contactless and plastic-free cards. The New York-headquartered financial services firm said the partnership enables instant virtual cards into mobile wallets for payment options.