As per information provided in the press release, the deal is expected to close in Q1 2023, subject to the satisfaction of customary closing conditions, and the acquisition is set to help Marqeta strengthen its credit capabilities and improve its modern card issuing across all card types.
When commenting on the announcement, Marqeta officials advised that they have noticed a considerable demand for differentiated credit products from companies that are looking to innovate in this space but are held back by the constraints associated with legacy technology. The company carried out examinations for possible acquisitions that would help establish its position within the modern credit space, and Power was believed to help strengthen Marqeta’s platform with its tech stack for credit card programme management.
Founded in 2021, Power offers a cloud-native platform that provides credit card programme management services for companies looking to create new credit card programmes, and is backed by investors of the likes of Anthemis, Fin Capital, CRV, Dash Fund, and Restive Ventures.
The combination of the Marqeta and Power platforms is set to enable Marqeta to directly offer its customers the tools needed for the creation of innovative credit products that meet the changing demands and expectations for credit cards from both consumers and businesses.
The two companies were founded on similar core product principles, having a modern and easy to scale platform that was built ‘with today’s developer in mind’, and the acquisition is set to allow Marqeta’s customers to launch an extensive range of credit products and constructs.
Furthermore, it will combine Power’s next generation rewards engine with Marqeta’s rewards innovations, and will add in Power’s data science toolbox and its ability to embed experiences within existing mobile and web applications. Additionally, Marqeta expects to leverage Power’s acquisition looking to accelerate the capabilities offered in its credit product.
Power officials advised that the company built a full-stack, cloud-native credit card issuance platform, and following the acquisition and their becoming a part of Marqeta, the company in now enabled to bring the solution to an extensive market, at a global scale.
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