Marqeta extends Block partnership as revenues rise

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.