Marqeta / Power Finance 2022
Marqeta acquired Power Finance for $275M on August 22, 2022.
- Target
- Power Finance
- Acquirer
- Marqeta
- Deal value
- $275M
- Deal type
- Cash
- Announced
- August 22, 2022
- Sub-sector
- Embedded Finance
Transaction overview
- Marqeta announced the acquisition of Power Finance on August 22, 2022 for $275 million in cash.
- The deal closed on approximately October 1, 2022, subject to customary closing conditions.
- Power Finance built a credit card program management platform for fintechs and consumer brands.
- The company allowed non-bank businesses to launch credit card products without building core infrastructure.
- Marqeta is a card-issuing platform founded in 2010 and publicly traded on Nasdaq since 2021.
- Marqeta processed roughly $166 billion in total payment volume in 2022.
- The acquisition extended Marqeta's product set from debit and prepaid into credit card issuance.
Why it matters
- The deal marked Marqeta's first major move into credit, a segment it had not previously served with its own infrastructure.
- Power Finance's acquisition signaled that card-issuing platforms were expanding beyond debit to capture credit program management fees.
Strategic rationale
Marqeta picks up cloud-native credit card management platform to compete with Galileo/Synctera and own the full embedded-credit stack.
Deal terms & multiples
About Power Finance
Power Finance was a San Francisco-based fintech founded in 2019 that provided credit card program management software. The platform handled compliance, underwriting configuration, and card lifecycle management, allowing companies to launch branded credit card products without a bank charter or proprietary back-end infrastructure. Its customers were primarily fintechs and consumer-facing brands seeking to add credit products to their existing offerings. Power Finance raised venture funding before the acquisition and operated as a small, early-stage company at the time of the deal.
- Founded
- 2019
- HQ
- United States
- Prior funding
- Approximately $18 million raised across seed and Series A rounds prior to acquisition.
About Marqeta NASDAQ: MQ
Marqeta is a card-issuing platform headquartered in Oakland, California, founded in 2010 by Jason Gardner. The company provides APIs that allow businesses to issue and manage payment cards, with customers including Block, DoorDash, and Affirm. Marqeta went public on Nasdaq in June 2021, raising approximately $1.2 billion in its IPO at a valuation near $15 billion. Its core business had been debit and prepaid card issuance; the Power Finance deal represented its entry into credit card program management.
- Founded
- 2010
- Ticker
- NASDAQ: MQ
Frequently asked questions
How much did Marqeta pay for Power Finance?
Marqeta paid $275 million in cash. The deal was announced August 22, 2022 and closed around October 1, 2022.
What does Power Finance do?
Power Finance built a credit card program management platform. It let fintechs and consumer brands launch branded credit cards without proprietary banking infrastructure.
Why did Marqeta acquire Power Finance?
Marqeta's existing platform covered debit and prepaid cards but not credit. The acquisition gave Marqeta credit card program management capabilities to offer existing and new customers.
When did the Marqeta and Power Finance deal close?
The transaction closed on approximately October 1, 2022, roughly six weeks after the August 22 announcement.
Was Power Finance profitable before the acquisition?
No public financial disclosures were made. Power Finance was an early-stage company that had raised roughly $18 million in venture funding before the deal.
Is Marqeta publicly traded?
Yes. Marqeta trades on Nasdaq under the ticker MQ and has been public since its June 2021 IPO.
Sources
- marqeta.com /company/news/marqeta-completes-acquisition-of-power-finance