Marqeta Expands European Footprint With TransactPay Deal
Marqeta, the NASDAQ-listed modern card issuing platform that processes nearly US$300bn in annual payments volume, has agreed to acquire TransactPay, a BIN sponsorship provider and electronic money institution (EMI) licensed in the UK and European Economic Area.
The acquisition represents a strategic move by the US-based fintech to enhance its card programme management capabilities across European markets, where it has experienced substantial growth.
Regulatory expansion
TransactPay, founded in 2012 and regulated by the Gibraltar Financial Services Commission and Malta Financial Services Authority, operates as an EMI in 25 countries with support for 16 currencies.
The company maintains principal membership status with both Mastercard and Visa.
EMI licences are regulatory permissions required for firms that issue and manage electronic money in the UK and EU, including digital wallets and prepaid cards.
These licences also enable companies to provide payment services such as online transactions, money transfers and virtual cards, while allowing them to store customer funds electronically.
The deal will simplify Marqeta's regulatory landscape in Europe, enabling its customers to avoid the complexity of working with multiple partners when operating across the region.
āMarqeta's business has seen tremendous growth in Europe, and we're excited to bring the strength and talent of TransactPay within Marqeta as we build on TransactPay's success to date and further accelerate our offerings for customers globally,ā says Marcin Glogowski, SVP Managing Director, Europe and UK CEO at Marqeta.
Integration benefits
By integrating TransactPay's capabilities, Marqeta aims to offer its clients a more streamlined approach to launching card programmes throughout the UK and EU markets.
Customers will receive dedicated support services and access to established bank, network and regulatory relationships.
The Oakland, California-based firm's technology enables companies to embed financial services within their own branded experiences.
Its platform handles compliance and security requirements while processing transaction data that clients can use to develop their financial products.
Currently certified to operate in more than 40 countries, Marqeta's technology is designed to reduce barriers to entry for companies seeking to launch financial services in new geographic markets.
Aaron Carpenter, CEO of TransactPay, comments on the acquisition: āWe've built our business on being a trusted partner to the leading payment providers in the world, including Marqeta.
āBecoming a part of the Marqeta Group will enable us to scale our existing BIN Sponsorship and digital wallet business even further whilst enabling their industry-leading customers to offer card products with digital payment offerings without patching together multiple partners.ā
Technical integration
For fintech firms, BIN sponsorshipāwhere a licensed institution provides its Bank Identification Number to enable card issuanceāremains a critical component of launching card programmes.
The acquisition gives Marqeta direct control over this process in European markets.
“The TransactPay acquisition enables Marqeta to make it even smoother for our customers to grow rapidly while keeping product innovation and compliance at the forefront of their strategy”
The combined offering will provide Marqeta clients with end-to-end card programme management in the UK and EU.
This includes regulatory compliance, programme design, card issuance and transaction processing within a single platform.
Marqeta's platform delivers the technical infrastructure required for real-time payments processing, allowing businesses to leverage transaction data for customer experience optimisation and financial management.
Glogowski notes: “Our all-in-one issuing platform enables our customers to create some of the most exciting and innovative card programmes available today, creating new streams of revenue and opportunities to engage with their customers and build lasting loyalty.
“The TransactPay acquisition enables Marqeta to make it even smoother for our customers to grow rapidly while keeping product innovation and compliance at the forefront of their strategy.”
The companies did not disclose financial terms of the transaction. Wilson Sonsini Goodrich & Rosati, P.C. served as legal counsel to Marqeta for the deal.
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