May 16, 2020

Fintech unicorn Monzo declares major milestones

Monzo
challenger bank
Unicorn
Amber Donovan-Stevens
2 min
Today Monzo announced a milestone in the company’s expansion.Though Monzo was founded in 2015, banking limitations were lifted in 2017. Operating at f...

Today Monzo announced a milestone in the company’s expansion. Though Monzo was founded in 2015, banking limitations were lifted in 2017. Operating at full capacity for just two years, the unicorn challenger bank has now has 3mn active accounts, as much as 1 in 20 adults, according to Monzo.

Monzo took 11 months to achieve the first million, eight months for the second million and four months for the third. At this rate of acceleration, it would not be unreasonable to predict that the mobile-only bank will achieve 5mn by the start of 2020.

To celebrate the milestone, the bank shared some statistics on customer usage: 

  • Coral cards have been used 750mn times

  • Over £18bn has been spent across all accounts

  • 55,000 people sign up every week

  • Just under £50,000 is spent through Monzo each minute

  • Friends on Monzo send one another £4.97mn a day

SEE MORE: 

Did you know? 

Monzo has a block feature for gambling, which was a tremendous success with over 140,000 individuals using it. According to an interview with Wired, Blomfield hopes to move onto a junkfood block.

Earlier this year, FinTech covered the top features of the challenger bank. You can read about it here

For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.

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Jun 10, 2021

Marqeta’s IPO shines a light on fintech fees

Fintech
IPO
Banking
Payments
2 min
Shares of payment processing company Marqeta closed up 13% after its market debut Wednesday on the Nasdaq

Marqeta, a fintech company, raised $1.2 billion with an initial public offering that priced high and exceeded expectations. The company priced its shares at $27, above the expected range of $20 to $24, and giving it a market valuation near $15 billion. Marqeta stock jumped 13%, closing at 30.52 on the stock market today.

This IPO adds to a number of recent fintech listings from companies such as the online lender SoFi and the no-fee brokerage Robinhood.

Founded in 2010 and based in Oakland, California, Marqeta sells payment technology that’s designed to detect potential fraud and ensure that money is properly routed. The company also creates customised branded debit cards and prepaid cards for corporate customers that include the delivery group DoorDash and Swedish fintech Klarna, as well as Square.

A large amount of Marqeta’s revenue comes from interchange fees, which is the transaction fee that merchants pay whenever a customer uses a credit/debit card to make a purchase. Due to the Durbin Amendment in the 2010 Dodd Frank Act, banks that have under $10bn in assets receive higher interchange fees than larger lenders from the transactions. 

This has allowed fintech start-ups, such as Marqeta and Chime, which is a personal finance app in the US, to take advantage of this by partnering with small banks and taking a cut of the fees. 

An increase in profits

Marqeta’s business has drastically increased during the pandemic as people in lockdown have turned to digital financial services such as Square’s Cash App and ecommerce companies such as DoorDash. The company more than doubled net revenues to $290m last year while narrowing losses to $48m. Business from Square made up 73% of Marqeta’s net revenue in the first quarter, which was an increase from the previous year. Marqeta’s agreements with Square last until 2024, according to the company.

Ian Johnson, SVP, Managing Director, Europe, Marqeta: “As the world becomes increasingly interconnected, more people are relying on digital payments to move through each day. Companies throughout Europe are looking for ways to offer better payment solutions for their customers. Marqeta is proud to be a publicly traded company and looks forward to bringing an even greater focus to scaling our products and delivering modern card issuing that launches cards quickly and provides greater flexibility than traditional card programmes. We’re pleased to support European businesses with ambition and purpose who use our platform to help write the future of payments.” 

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