Marqeta extends Block partnership as revenues rise
Marqeta is branching into Brazil with BaaS provider Fitbank and will power Cash App for another four years in the US and UK.
Global card issuer Marqeta has signed a four-year extension of its partnership with Block as its revenues increased by nearly a quarter year-over-year (YoY) for Q2 2023.
The company will continue to power Block’s mobile money transfer app Cash App through to 2027, and has also added a new partnership branching into Brazil with banking-as-a-service platform Fitbank.
The Latin American fintech will act as Marqeta’s BIN sponsor for customers looking to launch in the area in addition to itself being a customer.
Both partnerships come alongside the news that in the second quarter of 2023, Marqeta saw total processing volume reach $54bn with a net revenue of $231m, marking a 33 per cent and 24 per cent increase YoY, respectively.
“In the second quarter, we grew our business to ever-increasing levels of scale, exceeded our sales bookings goals again and reduced our cost structure,” Marqeta CEO Simon Khalaf said.
“Our execution has been strong, including accelerating our go-to-market motion, enhancing our product offering, and extending our partnership with Cash App. I firmly believe Marqeta is well positioned to capitalise on the fast-growing embedded finance market.”
Gross profit for the company increased by 8 per cent YoY to $85m from $78m, and gross margin was 37 per cent.
Net loss, meanwhile, increased by $45m to $59m, with a net loss margin of 25 per cent.