Marqeta

Marqeta generates revenue primarily through interchange fees earned on transactions processed via its platform. When a card issued through Marqeta is used, the merchant's bank pays an interchange fee, which Marqeta splits with the issuing bank partner and retains as its core revenue stream. This volume-based model aligns its incentives with the transaction growth of its clients.

Digital banks, buy now pay later providers, on-demand delivery services, and expense management platforms constitute Marqeta's core customer base. These businesses require real-time card issuance, customizable authorization controls, and immediate transaction data, all of which Marqeta's API architecture supports natively. Square is a prominently disclosed customer.

Marqeta is not a bank; it operates as a registered card issuer-processor in partnership with sponsoring banks that hold the actual charters. This partnership model allows Marqeta to offer card issuing services in 40 countries while the partner banks manage regulatory capital, compliance with local banking laws, and settlement with card networks.

Marqeta built its platform from scratch using open APIs rather than retrofitting APIs onto legacy mainframe systems. This allows clients to program custom authorization rules, create dynamic spend controls, and launch card products that can be modified in real time. The architecture grants fintechs a level of control over the payment experience that traditional processor middleware typically restricts.

Marqeta went public on the Nasdaq in June 2021 under the ticker MQ. The IPO shifted the company from a venture-backed private entity to a publicly traded corporation, with early investors and founders holding significant but diluted stakes. Institutional shareholders and public market investors now own the majority of the company.