Banking as a service

BaaS Company Spotlight 4/8: Marqeta — The rising king of card issuance infrastructure

  • Marqeta is one of the first companies to build APIs for issuing processing natively as a core processor.
  • It enables companies like DoorDash and Affirm to build out highly specialized payments capabilities.
close

Email a Friend

BaaS Company Spotlight 4/8: Marqeta — The rising king of card issuance infrastructure

This spotlight of a leading banking as a service provider is part of Tearsheet’s coverage of BaaS. Please see our BaaS Buyers Guide for more information.

  • Who we spoke to: Jason Gardner, CEO of Marqeta
  • Establishment date: January, 2010
  • Bank license: No, they partner with banks (such as Sutton Bank)
  • API Documentation: https://www.marqeta.com/api

History

After Jason Gardner, Marqeta’s CEO, sold a previous payments company to MoneyGram in 2010, Jason realized that while there was a lot of innovation in the acquiring space such as checkout.com and Stripe, there was little innovation on the issuing/processing side, and he decided to build a modern platform from scratch.

Service provided

Marqeta is an issuer processor. Right now, most large FIs use legacy banking systems to issue cards, and these systems are old and clunky. Marqeta offers a fintech alternative by providing the infrastructure, or ‘plumbing’ for issuance of debit and prepaid cards, while still working within the framework of the current banking system. As its platform is very extensive, Marqeta enables its customers to create advanced and complex workflows with its APIs. Since Marqeta is deeply integrated into the payments infrastructure, it is able to offer real time information flow, enabling its clients to make transaction approval decisions right at the point of sale.

Specific features include virtual/physical card issuance, tokenized card issuance (Apple Pay, Android Pay) real time approvals (JIT Funding), and fraud avoidance. Marqeta also partners with other companies to provide more services, like card manufacturing.

Differentiator

One of the first companies to build APIs for issuing processing natively as a core processor, Marqeta is a modern platform. Marqeta allows companies to get deep into the card issuance core, enabling advanced use cases.

Chief Competitor

Marqeta’s competitors are primarily legacy systems like FIS, Fiserv, First Data, and Wex, which have been selling to banks for many years. Marqeta is a new entrant that’s working to disrupt the industry with its open API.

Marqeta’s developer-lead approach means that it does not consider other card issuers (like PEX or Green Dot) as competition. These firms are focused on providing a card as the end product — Marqeta created the underlying infrastructure. 

Chief Customer / Core focus

Marqeta works with companies that want to build very specific products and can only do so with deep control over the entire flow of payment. With Marqeta, customers can sign up and start issuing within weeks, in contrast to working with a bank, which can take months and in certain cases, years. Marqeta has industry strength in commercial and consumer businesses, digital banks, ecommerce, lending, on-demand delivery, and travel.

Plans for the future

As some countries continue to move away from cash, Marqeta wants to expand to support different methods of payments and new geographies.

Clients and Case Studies

DoorDash: DoorDash is an on-demand food delivery service that uses Marqeta to reduce fraud. Marqeta enables DoorDash to make sure their delivery staff fulfills their orders exactly, picking up the right order at the right time for the right amount at the point of sale. 

Affirm: Affirm is a POS SMB lender which approves loans in seconds. Among other things, Affirm uses Marqeta to issue virtual cards for last mile financing, as well as card control by restricting funds by merchant, dollar amount, and time.

Banking as a Service Buyers Guide

0 comments on “BaaS Company Spotlight 4/8: Marqeta — The rising king of card issuance infrastructure”

Outlier OpinionsMakers

Banking as a service, Sponsored

Banking as a Service unlocks opportunities for brands, bigtechs, fintechs, and banks

  • BaaS is a gamechanger for more than the end-users, but the entire financial ecosystem: distributors, enables, and providers.
  • According to Finastra’s latest research, 85% of senior executives are already implementing BaaS solutions, or planning to within the next 12-18 months.
Finastra | March 28, 2022
Banking as a service

Quick take: Piermont Bank eyes embedded business with Unit partnership

  • Piermont Bank announced a new partnership with Unit to expand its product capabilities.
  • The bank says it has an active waitlist of fintechs and it expects to onboard more clients in 2022.
Subboh Jaffery | March 04, 2022
Banking as a service, Business of Fintech

‘People don’t care about privacy’: How payment app Mezu pivoted to become embedded finance platform Alviere

  • Mezu, a privacy-focused payments app, didn't manage to catch on - so the management team decided to turn it into an embedded finance platform - Alviere.
  • Alviere focuses on big brand companies with an existing customer base that want to add banking services to their toolkit.
Iulia Ciutina | December 29, 2021
Banking as a service, Sponsored

Wildfire: The industry-by-industry spread of banking as a service

  • Banking as a service has progressed from its original role enabling neobanks to investing, PFM, and more.
  • One can look at how banking as a service has performed in nearby industries to gauge whether it’s worth adopting.
Q2 | November 09, 2021
Banking as a service, Member Exclusive

Synctera is creating a marketplace model for its banking as a service platform

  • New BaaS firm Synctera is differentiating itself from competitors by giving fintechs options from more than one bank.
  • Still, platform risk could slow the company’s progress.
Rivka Abramson | July 07, 2021
More Articles