- New York-based Power Finance, which was founded in 2020, has created a platform that enables businesses to create incentive programs for the branded payment cards they give their clients.
- After the deal is complete, Marqeta will combine Power Finance’s technology with its platform for issuing payment cards.
Power Finance Inc. is a financial technology business that came out of stealth mode last year. Marqeta Inc. recently announced plans to acquire the company for USD 223 million cash.
If an undisclosed performance milestone is reached after the deal is finished, Marqeta will make a further payment of USD 53 million. Power Finance intends to accomplish that goal within a year of the acquisition. The business had previously obtained a USD 300 million credit line and USD 16.1 million in early capital from investors.
Marqeta, a company established in Oakland, California, listed its shares on the Nasdaq in 2021 after raising USD 1.2 billion in an IPO. It runs a platform that enables businesses to give their clients and staff branded payment cards. In the third quarter, it made USD 192 million in revenue, which is 46% more than it did at the same time last year.
Power Finance, based in New York, also focuses on the market for credit and debit cards. The organization, founded in 2020, has created a platform that enables businesses to create incentive programs for the branded payment cards they give to their clients. Power Finance claims that its platform allows rewards to be coordinated with client shopping preferences to retain more users.
Additionally, the startup offers several additional tools. Power Finance includes a dashboard in its platform that lets businesses monitor stats like the volume and dollar amount of transactions completed with their branded payment cards. Customized promos can be distributed to cardholders using built-in marketing elements.
Power Finance provides a variety of professional services in addition to its platform. The startup can assist businesses in designing payment cards, launching marketing campaigns, and creating client retention plans. Additionally, it can provide technical support to a business’s cardholders.
After the deal, Marqeta will integrate Power Finance’s technology with its platform for issuing payment cards. According to Marqeta, the startup’s tools for creating rewards programs will enable businesses to offer payment cards that are more competitively priced.
Simon Khalaf, the new CEO of Marqeta, said, “We thoroughly examined possible acquisitions to more quickly establish Marqeta’s leadership in the modern credit space. It became clear to us that Power would strengthen Marqeta’s platform with a best-in-class tech stack for credit card program management.”
Fintech businesses issue payment cards to their users through the Marqeta platform. Additionally, it permits businesses to give their staff members corporate credit cards. For instance, online retailers use the platform to make it simpler for staff members to buy products from suppliers.
Marqeta’s focus to broaden its emphasis beyond the market for payment card issuers includes this acquisition of Power Finance. Before this, it launched a product suite known as Marqeta for Banking to enter the banking technology market. The product line promises to make it easier and faster for businesses to create financial services like deposit accounts than it typically takes.