Please ensure Javascript is enabled for purposes of website accessibility

Why Marqeta Stock Paid the Bills on Wednesday

By Danny Vena – Oct 27, 2021 at 1:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The modern credit and debit card issuing platform added an important new fintech partner.

What happened

Shares of Marqeta (MQ 3.08%) charged sharply higher Wednesday, jumping as much as 18.1%. As of 12:21 p.m. EDT, the stock was up 7%.

The modern card issuing specialist climbed as it announced a partnership with fintech company (BILL 6.30%).

So what

Marqeta revealed in a press release today that it will underpin "new innovative commercial card products for's financial institution customers." provides cloud-based software to help simplify and automate back-office financial processes for small- and medium-sized businesses, so this could represent a lucrative opportunity.

Person holding a credit card while looking at a laptop.

Image source: Getty Images.

For its part, Marqeta's cloud platform offers application programming interfaces (APIs) that help companies build out highly configurable credit and debit card programs at scale. will benefit as it works to digitize the payments space and streamline the accounts payable process for its customers. CEO René Lacerte was bullish, saying the partnership would give its customers "enhanced financial operations capabilities, enabling faster and easier payment offerings."

Now what has a substantial client base, serving more than 121,000 customers in its fiscal fourth quarter (ended June 30), as well as 10,700 businesses that use its DivvyPay spending management tools. This represents a noteworthy opportunity for Marqeta, significantly expanding its business prospects.

The company was already generating impressive growth, with revenue up 76% year over year in the second quarter. Marqeta has also announced impressive customer wins in recent months, including deals with Uber Technologies and Alphabet's Google Pay, as well as handling payments for other fintech leaders including Square and Affirm Holdings.

That said, it's also important to keep in mind that Marqeta only had its initial public offering (IPO) in June, so it has a limited history as a public company. It also continues to generate significant losses as it works to leverage its cloud-based platform, so there's still an element of risk investors should consider before buying shares in Marqeta.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Danny Vena owns shares of Alphabet (A shares) and Square. The Motley Fool owns shares of and recommends Affirm Holdings, Inc., Alphabet (A shares), Alphabet (C shares), Holdings, Inc., and Square. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.