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US-based open API issuer-processor Marqeta announced a new product and new clients in Europe, continuing its ambitions of building out a global presence.

Global Payments RevenueHere’s what it means: Marqeta introduced a developer product and signed up its first three European customers. 

  • Marqeta launched a digital banking solution for European fintech innovators. The solution allows developers on its platform to build, test, and refine new features and solutions that integrate with existing systems and software. The new product supports instantly issued virtual cards and delivers advanced spend controls to engage users and grow card use.
  • Firms in several European markets have signed up.Marqeta signed up three companies including France-based digital bank Morning, Spain-based digital bank Aplazame, and Switzerland-based point-of-sale (POS) lending provider YAPEAL. 

The bigger picture: Europe represents a promising growth opportunity for Marqeta and it could serve as a springboard for further international expansion.  

  • Marqeta’s overall volume doubled annually not long after its initial entry into Europe, underscoring the growth opportunity. Marqeta’s been gearing up for a full European launch: The firm previously partnered with Visa to expand into the UK and Europe, following several internationally focused hires earlier in 2018. The European card market is mature in some regions, like the UK, where two-thirds of the population uses contactless cards. But other regions have room for growth, like Germany, where cash still comprises 74% of total transactions, for instance. The varying degree of payment market maturity throughout Europe gives Marqeta several expansion opportunities. 
  • This move is “the first step in a much larger international expansion,” Ian Johnson, head of European growth at Marqeta noted. Marqeta could eventually apply its approach of forming partnerships and then developing market-specific solutions in regions beyond Europe, like in APAC, for example. That would allow it to capitalize on the massive global payments industry opportunity, which is poised to hit $2.4 trillion by 2027.  
  • This expansion comes during a period of growth for Marqeta.Marqeta was recently rumored to be approaching a substantial Series E funding round — a massive $250 million round that would be five times larger than its Series D round last June, giving it a valuation of $1.9 billion. Though the firm previously declined to comment on the details of the round to Business Insider Intelligence, Marqeta CRO Omri Dahan noted that Marqeta plans to use the capital to “further fuel domestic and international expansion.” Further, Marqeta is reportedly on track to earn $100 million in revenue this year, per The Wall Street Journal, and this expansion could accelerate that goal.

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SEE ALSO: THE PAYMENTS INDUSTRY ECOSYSTEM: The trend towards digital payments and key players moving markets

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