Do you want to know the business model that drove Payment tech company Marqeta to its $16 billion IPO? Then, discover how Marqeta rose to the top and revolutionized payment technology.
Get ready to be amazed by their pioneering strategies and innovative approach!
Marqeta, Inc., a technology company based in Oakland, California that provides payment solutions to businesses and organizations across the globe has filed for its initial public offering (IPO) with the US Securities and Exchange Commission (SEC). The company seeks to raise $1.75 billion in its IPO with an estimated value of over $16 billion on private markets.
Founded in 2010 by CEO Jason Gardner, Marqeta has become a leader in providing modern payment solutions for many of the world’s largest companies. Marqeta’s open API platform makes it simple for businesses to access new payment solutions quickly and safely. Through its platform, customers can access innovative payment technologies such as tokenization, biometrics authentication, Apple Pay, and Google Pay for their processes. In addition to allowing organizations easier access to new payment methods, Marqeta also offers data analytics software and services used by many of its partners. With the help of Marqeta’s data-driven tools, customers can gain deeper insight into their internal processes and customer behavior.
Discovering new opportunities through modern payment technologies is just one benefit companies gain from using Marqeta’s platforms. Another benefit that keeps organizations returning is the focus on customer experience driven by Marqeta’s operational solutions. Organizations can utilize automated processes, including chargeback management and fraud protection services provided by Marqeta which helps ensure that customers have a pleasant experience when utilizing their products or services.
Payment tech company Marqeta files for IPO as value tops $16 billion on private markets
Marqeta is a payment technology company based in the United States. Founded in 2010, Marqeta enables commerce by providing issuing and processing infrastructure that allows customers to develop and launch innovative card programs. Marqeta powers many businesses, from traditional banks to emerging payments companies, by providing payment solutions such as Visa virtual cards, Mastercard prepaid cards, and debit cards. Marqeta’s platform is built for customizability and integration with internal systems for programs tailored to each customers’ needs.
Marqeta excels at building digital-first offerings that fuel the growth of businesses worldwide. It provides control and visibility so its partners can customize their card programs. This ability to personalize offerings helps partners innovate their program features quickly while managing risk with comprehensive fraud prevention tools. Additionally, by leveraging Marqeta APIs, companies can easily create custom products that meet their specific requirements via secure payments powered by the platform’s next-generation technology stack.
This innovative stack of superior card programing services provide its customers with faster time-to-market on new products as well as improved customer experience while also facilitating robust data analytics capabilities to gain better insights on user behavior from transactional data generated from card-based purchases made with products powered by Marqeta’s platform.
Marqeta’s Business Model
Marqeta is a payment technology firm that provides a modern card issuing platform for businesses to build, scale and launch their payment solutions. The company operates in several markets worldwide, with its headquarters in Oakland, California. They focus on making it easier for businesses of all sizes to issue and control payments on a global scale.
Marqeta’s business model is built around two core elements: their open card issuing platform and managed services products. Their platform allows clients to instantly build and customize payment processing capabilities through their digital user interface. In addition, clients have access to white label capabilities or can embed with Marqeta’s backend-as-a-service platform. This makes it incredibly easy for them to manage everything from card issuing and card control through fraud prevention and other security measures.
Managed services are also available from Marqeta, although they are not as integrated into the core product offering like those available within the open-source platform product line. These services provide businesses with tailored, customized solutions designed specifically to cater for their needs, both current and future (such as ongoing compliance obligations).
Since its foundation in 2010, Marqeta has experienced tremendous growth due largely to its innovative approach towards payments technology development and secure environment sustainment initiatives. Recently, Marqeta successfully filed an S-1 form with the SEC applying for public listing on stock exchanges valued at more than $16 billion in anticipated revenue – representing a significant opportunity for investors worldwide keen to get involved in this rapidly expanding tech space!
Marqeta, Inc., the payments technology company, has filed for an initial public offering with the expectation that it could exceed a $16 billion valuation. This would put the company in an elite group of tech unicorns at a time when demand for debit cards and other newer financial instruments is surging.
The Oakland-based, venture-backed fintech caters to companies from traditional banks to start-ups including Robinhood, Chime and DoorDash. Its focused customer base is growing rapidly as digital wallets, mobile checkouts and subscription services accelerate digital transformation of the payments landscape. The filings made with the US Securities and Exchange Commission on Thursday provide details about Marqeta’s business model and expected cash flow, listing annual revenues of over $350 million as of December 2020.
The payments gateway started commercially in 2013 by current CEO Jason Gardner. Marqeta’s platform offers customers access to payments processing services for debit and credit card issuing, payment acceptance, card tokenization, analytics tools, and configurable fraud detection systems. It enables clients to operate their clearing suite rather than paying third party providers like Stripe or SynapseFI who build more general-purpose payment processing solutions powering the larger end merchant markets. Its marketplace model allows different payment partners such as banks or ecommerce stores plug into its B2B SaaS services which generates highly recurring revenues while allowing them to serve customers better due to faster onboarding and integration times; up to 8x faster than traditional banking paper/technical setup procedures.
The IPO documents also reveal that Marqeta has raised more than $621 million during its lifetime, making it one of the fastest unicorn IPOs since Uber Technologies Inc.’s debut two years ago. Goldman Sachs Group Inc., JPMorgan Chase & Co., Credit Suisse Group AG are leading the offering with Bank of America Corp., Jefferies Financial Group Inc., KeyBanc Capital Markets Inc., Nomura Holdings Inc., Canaccord Genuity Group Inc. also serving as book runners in this matter.
Private Markets Valuation
Payment technology company Marqeta has filed for an initial public offering (IPO), aiming to capitalize on its $16 billion valuation in private markets. This puts the nine-year-old payments startup on track to become the latest high-profile firm within the financial technology sector to go public and suggests that investor appetite is strong.
The IPO provides an opportunity to uncover key details about Marqeta’s financials and performance metrics. Marqeta reported earnings of $146 million in 2020, representing 294% annual growth in a year disrupted by the Covid-19 pandemic. The company said it also grew monthly active users five times over between 2018 and 2020, reaching more than 742 million users.
Marqeta’s filing also notes that it posted a net loss of $88 million in its previous fiscal year amid three acquisitions and costs associated with selling products that help merchants open digital wallets. It has raised more than $807 million from investors including Goldman Sachs, Insight Partners, Iconiq Capital and 83North Ventures.
Marqeta Inc., a payment technology provider, has filed to go public on the New York Stock Exchange. It is believed the company could be valued at more than $16 billion when it hits the markets.
Marqeta was founded in 2010 and offers businesses a prepaid debit card system that can be used for direct deposit, payments and rewards programs. It also provides software for banking, financial services and payments. The company competes with companies such as Square Inc., Stripe Inc., PayPal Holdings Inc., Visa Inc. and Mastercard Inc.
Marqeta’s financial results show strong revenue growth over its debuting year, with revenue increasing from $95 million in 2018 to $134 million in 2019. The company’s earnings before interest, taxes, depreciation and amortization (EBITDA) increased from negative $5 million in 2018 to $25 million in 2019, an impressive result considering its competitive landscape. Additionally, Marqeta had a total transaction volume of over 4 billion USD as of 31 December 2019.
This IPO will represent one of the most notable tech listings this year and investors are keen to see how Marqeta will perform relative to other blockbuster IPOs such as Airbnb’s 2020 listing on NASDAQ which saw shares soar 119 percent on its first day of trading. Stay tuned as Marqeta gears up for its big debut!