Marqeta, the open-API platform pioneering the future of modern card issuing, today announced record growth in the alternative lending space.
The company has established a dedicated alternative lending team, introduced major new capabilities to meet a variety of needs and use cases, and made significant investments in technological and regulatory frameworks.
“Marqeta is solving real problems for tech-enabled lenders, almost all of whom need modern card products to bridge the gap between lending and payments,” Kabbage co-founder and president Kathryn Petralia said. “As consumers look to optimize services they once received from banks, lenders simply need a more flexible, scalable and compliant platform — no one has done more than Marqeta to provide that.”
In the past 12 months, Marqeta milestones include:
- Introduction new card products supporting POS financing, merchant cash advance, lease-to-own, and factoring;
- Customer count in the vertical more than tripled;
- FinanceIt, Progressive Leasing, Acima, Lendr, and Payability join Affirm, Kabbage and Klarna on Marqeta’s list of marquee customers in the space; and
- Annual payment volume and revenue from the vertical continue to grow by more than 100 per cent.
Marqeta has brought its modern card issuing platform to various use cases, introducing card products meeting a variety of needs, including merchant cash advance, POS, and SMB working capital.
Small business lenders can now:
- Instantly provide customers with financing when they need it, as often as they need it, without having to preload, lock up or guess the amount of funds they will need;
- Offer customers multiple card form factors to increase market stickiness and renewals;
- Manage payouts through a branded or white label card program;
- Manage and lower risk with dynamic and real-time spend controls.
Point-of-sale lenders can now:
- Onboard merchants quickly and easily, with no POS system integration needed;
- Disburse funds when customers need them – even in the aisle — increasing purchase amount and lifetime value;
- Exercise dynamic spend controls to lock card spend down at a granular level to a specific merchant category or retailer, creating merchant loyalty and co-branded experiences; and
- Capture spend data for usage and customer insights, while offering borrowers a seamless mobile experience.
Consumer lenders can now:
- Allow end users to access the funding “on demand,” when and where they want;
- Provide customers with multiple card form factors to meet their needs;
- Let borrowers pay no interest until money is spent and draw financing when needed;
- Improve customer loyalty and reduce risk through meaningful data and analytics;
- Gain key insights into customer spending patterns to drive targeted marketing strategies, enable portfolio growth, help mitigate risk, and inform underwriting.
“A record number of innovators in the alternative lending space depend on Marqeta to deliver the technology they need to bring sophisticated payment products to market,” said Omri Dahan, CRO at Marqeta. “Having the best technology is critical, but so is understanding the evolving regulatory environment; it’s very rewarding to see our investments in both pay off. The intersection of alternative lending and payments is playing out on our platform, which is exciting and encouraging.”