Mastercard backs card issuing start-up Marqeta

LONDON (Reuters) - Mastercard Inc MA.N has made a strategic investment in fintech firm Marqeta Inc and extended an existing partnership with the card issuing start-up, the companies said on Thursday.

A Mastercard logo is seen on a credit card in this picture illustration August 30, 2017. REUTERS/Thomas White/Illustration

Mastercard and Marqeta will work together to expand into new markets, build new products and launch new card programs, they said.

The size of the investment was not disclosed.

“As Marqeta’s global ambitions continue to grow we saw an opportunity to strengthen the partnership,” Omri Dahan, Marqeta’s chief revenue officer, said in an interview. He added that Marqeta had not been in need of a cash injection.

The Oakland, California-based company has developed a platform that it says makes payment card issuing and processing simpler and more efficient for businesses. Its backers include Goldman Sachs Group Inc GS.N and Visa Inc.

Marqeta raised $150 million from an undisclosed U.S. institutional investor in late May at a valuation to $4.3 billion.

The company’s business has continued to grow at a rapid pace this year, as COVID-19 lockdowns have led to a surge in demand for digital payments.

Marqeta and Mastercard have been working together since 2014, with joint projects including the launch of Square Inc's SQ.N payment card for small businesses, they said.

Their collaboration has mainly focused on North America and Europe, and their new partnership will see them expand in Asia Pacific, they said.

Aside from Square, Marqeta's clients include other well-known technology start-ups such ride-hailing company Uber Technologies Inc UBER.N , shopping app Instacart and lending start-up Affirm.

Editing by Jason Neely