Summary List Placement
Consumers historically relied on branch locations to choose a bank. But now, they’re getting used to managing all their finances online with the proliferation of digital-only banks.
Goldman Sachs’ Marcus is one such bank, starting in lending and savings. Now, it’s planning to launch checking accounts for Marcus in late 2021.
With checking accounts come debit cards. And behind most fintechs’ debit cards are issuing partners like Marqeta, Galileo, DaVinci Payments and Stripe, to name a few.
And Marqeta won the bid to be Goldman’s card-issuing partner.
Read more: The CEO of $1.9 billion Marqeta says it’s looking to boost its headcount by 20% and is eyeing smaller startups to buy
Through its open-API (meaning plug-and-play) card-issuing offering, Marqeta powers consumer-facing companies like Instacart, Square’s Cash App, and buy now, pay later fintech Affirm, which went public on Wednesday.
Marqeta’s existing relationship with Goldman didn’t hurt
Marqeta founder and CEO Jason Gardner told Insider the deal was less a sale than a partnership that came through a years-long relationship with Goldman, which invested in Marqeta in 2016.
“It’s not a transaction, per se,” Gardner said. “It’s years of getting to know the team, sharing roadmaps of where we’re headed and what we’re going to do, which ultimately comes to Goldman Sachs choosing Marketa to help them build these products.”
The startup has raised over $520 million to date from investors, including Coatue, Greylock, and Spark Capital, as well as the corporate venture arms of Mastercard and Visa. It was last valued at $4.3 billion following a $150 million fundraise last May.
Read more: $4.3 billion Marqeta is targeting a wider range of customers for its digital cards with a new ‘tokenization-as-a-service’ push
And winning Goldman’s business is, for Gardner, a validation of Marqeta’s business model.
“It not only underscores what we’re doing and …read more
Source:: Business Insider