Power Finance, a financial infrastructure business based in New York City, was Marqeta’s first Fintech acquisition, and the sale was worth $223 million, giving the publicly traded company a valuation of $3.7 billion. Power Finance, which didn’t launch until 2021, has $16.1m in funding from Dash Fund and CRV in addition to stock price. The company’s first offering is a payment card issuance program that allows businesses, brands, and financial institutions to integrate fintech experiences like credit card issuance, promotions, and tailored incentives into their own mobile and online applications. Payments totaling about $70 million will be handed over 2 years, with extra payments contingent upon the achievement of specific objectives.

Marqeta is able to improve and grow its credit product as a result of the purchase because it can now draw on Power Finance’s machine learning toolkit and embed encounters in its own finance offering. Although Marqeta has traditionally dealt with credit and debit cards, the company expanded into the consumer banking industry in February 2021 to help other brands create credit card programs. At the completion of the transaction, Randy Fernando will assume responsibility for the product marketing of Marqeta’s card system.

Personalized credit cards are becoming increasingly popular, and Simon Khalaf, the new CEO of Marqeta, has stated that the company intends to possess the whole stack of technologies necessary to provide it. Increasing demand for branded cards that can be combined with the characteristics of new, mobile-first retailers, creator marketplaces, and labour markets is what motivated Marqeta to include Power Finance’s offering into its credit card platform. It is anticipated that the majority of Power Finance’s staff will transfer over to Marqeta following these events of mergers & acquisitions.

You can find latest fintech news, insightful analysis of the financial sector, and the latest events in the fintech world at our website.