October 29, 2015
A number of industries experienced major disruptions in recent years that were fostered by technological breakthroughs. The payments industry is a hot and fast-growing space where numerous FinTech startups are changing the status quo. Marqeta appears to have become one of the key disruptors with the Marqeta Platform raising another round of funding and and having now announced some of the biggest and most forward-thinking companies as new clients.
On October 27th, at Money20/20 2015 in Las Vegas, Marqeta, the Open API issuer processor platform, confirmed closing a $25 million Series C round and revealed newly acquired clients Affirm, DoorDash, HyperWallet and Kabbage. Now among Marqeta’s clients are:
The company will use the newly raised funds to expand its market reach in the US, further invest in its Open API platform and initiate international expansion in North America and Europe in 2016. With the new funding round, Marqeta will also initiate its international expansion efforts in support of existing customer programs and beyond. Stefan Tirtey, MD at CommerzVentures noted about the investment in Marqeta: There’s nothing like Marqeta in Europe and we see huge potential for them here.
The Marqeta Platform enables program partners to integrate and authorize payments across a multitude of services. Among Marqeta investors who brought the total investment in Marqeta to $46 million are:
As stated in the official press release, founded in 2010, Marqeta has re-engineered how payment cards, virtual cards and mobile authorization products should be developed and deployed. The Marqeta Platform, built from the ground up with no legacy infrastructure, provides the world’s first fully documented, open API issuer processor platform. Marqeta’s API allows developers to issue cards, load cards, lock cards, check balances, and approve transactions. Among advanced functions are real-time loading/unloading/blocking/unblocking of debit cards, limiting payments to a specific POS terminal, merchant, or specific time of the day, or issue virtual debit cards in real time for one-time use. All those functions and more are giving Marqeta the edge as a disruptor of the industry and fostered the investment interest of CommerzVentures and other investors.
Companies can build, issue and deploy innovative payment, finance and commerce solutions with enormous control over what, where, and how purchases are authorized. The Marqeta Platform integrates with Visa, MasterCard and Discover.
Tony Xu, CEO and co-founder of DoorDash, added in the official press release, Over the past year DoorDash has grown from operating in just one market and three cities to covering 18 markets across more than 250 cities. We needed a payments partner that could handle this scale while blending seamlessly into our technology as we build the on-demand delivery infrastructure for local cities. Marqeta’s Open API platform ensures that we’re able to provide an easy, simple and secure experience for our Dashers, local businesses and customers alike.
Stefan Tirtey, MD at CommerzVentures shared his insights on why CommerzVentures invested in Marqeta. Among the reasons Stefan mentioned cost-efficiency and ease of implementation saying that Marqeta is the first developer-centric card issuing, processing and management platform. It takes significant cost and friction out of implementing new card programs, much in the same way that AWS, Twilio, and SoundCloud have done it in their sectors.
Alongside with the previously mentioned cost-efficiency and ease of implementation, CommerzVentures saw in Marqeta a new distribution partner for its issuing bank partners and the card schemes (Visa, MasterCard, and Discover), providing access to small, innovative and potentially fast growing clients that they previously would not have been able to serve adequately.
We believe Marqeta to be disruptive and having the potential to democratize the card issuing industry, allowing for many novel uses of cards. Marqeta’s customers, including Facebook, Affirm, Door Dash, and Perk seem to agree, and so do we, added Stefan in his review of the company and comments regarding the investment.