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What Marqeta’s entry into the credit card industry means for Marqeta the brand

  • Marqeta announced a new partnership with the First National Bank of Omaha to expand its partner ecosystem as it prepares for a credit launch.
  • Marqeta wants to become a one-stop shop for brands looking to launch card services.
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What Marqeta’s entry into the credit card industry means for Marqeta the brand

As 2021 rounds up, card issuing platform Marqeta is heading into 2022 at full throttle. In February this year, having already established itself in the debit card market, the firm announced its expansion into the consumer credit card market. Last week, the firm revealed a key development in that program: a partnership with the First National Bank of Omaha (FNBO). The collaboration is intended to expand Marqeta’s ecosystem of partners, enabling its customers to launch modern credit cards.

As the American economy continues to recover from the pandemic, consumers’ appetite for credit has notably increased. On the other hand, banks’ appetite to lend has also increased. 34.1 million new bank cards were originated in the US this year, up almost 42% from the previous year, according to a report by Equifax. The report also found the average credit limit for all bank cards issued in June 2021 to be $4,517, up almost 16% from June 2020. This overview helps explain why firms originating in the debit sphere are now looking to expand into credit offerings.

“With 52% of card spending happening on credit in the US, this is a massive market opportunity that is underserved by current technology options that have done little to modernize the card experience,” Vidya Peters, Marqeta’s COO, said in a conversation with Tearsheet. “Our credit card issuing platform is a critical strategic priority for Marqeta to ensure we’re properly attacking our total addressable market and continuing to deepen our competitive moat in Modern Card Issuing.”

Marqeta’s credit offering will allow its clients to launch credit cards. Using the firm’s open API technology, partner brands will be able to embed the card experience directly into their app ecosystem. In addition, the API enables partners to extend credit applications, onboard accounts, and evolve cards to meet changing customer needs. Marqeta’s platform also includes a self-service dashboard, which clients can use to configure and update credit products. 

 


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