Marqeta has modernized the overlooked, backend, payment card issuing market. Traditionally Total Systems Services (now Global Payments) and First Data (now Fiserv) dominated the large bank card issuing sector. However, Marqeta’s nimbler, easier to customize, cloud-originated technology approach, with no legacy systems to maintain, has gained a significant share in the company branded debit, prepaid and credit card issuing market. Our interest peaked following a tumultuous last several years including the last twelve months with a management change, strategy update, potentially more balanced top and bottom line outlook backstopped by $1.3 billion in cash. Furthermore, we are intrigued by the growing annual total processing volume (TPV) which could achieve over $220 billion in 2023, broadening suite of fintech services (including embedded finance), and a premier web 3.0 customer list such as Uber, Instacart, Doordash and Block.
Wayne Johnson III, Executive Advisor, Wellesley Hills Financial, Managing Member, Payment Chain Consulting
