Fintech company Marqeta will acquire a platform for managing Power Finance credit card programs.
The cost of this transaction will be $ 275 million. In November, Marqeta reported that at the end of the third quarter of 2022, its net loss was equal to $ 53 million. The transaction is being implemented in a financial period that is not the most favorable for the company, but access to advanced credit card program management technologies has many long-term prospects.
As a result of the purchase, the next-generation Power Finance reward mechanism will be combined with Marqeta’s own innovations in the same area of rewards. The Power data science toolbox and the ability to integrate the experience into existing mobile and web applications will also be supplemented.
Simon Khalaf, the new CEO of Marqeta, says that there is currently a high level of demand for differentiated credit products from firms that want to apply innovative solutions, but cannot do so due to outdated technologies. He also announced his intention to establish Marqeta’s leadership in the modern credit space.
Power Finance was founded in early 2021 by Randy Fernando and Andrew Dust. Over two years, the company has attracted $16.1 million in funding from investors, including Anthemis, Fin Capital, CRV, Dash Fund, and Restive Ventures.
After the deal is implemented, Randy Fernando, CEO of Power Finance, will become the head of product management of the Marqeta credit card platform. He says that as part of the activity in the new ownership structure, his company’s products will enter the global market and will have a wider practice of use.
Preliminary plans for the implementation of the transaction provide for its completion in the current quarter. Payments under the Power Finance purchase agreement will be made within two years.
As we have reported earlier, Marqeta Builds Product for Mobile Wallets.