David Paul Morris/Bloomberg
Marqeta is looking to make buy now/ pay later a central part of its business as it works to further diversify its customer base from Block and achieve profitability by 2026.
BNPL and lending were two key drivers of Marqeta’s second-quarter outperformance, Keefe Bruyette and Woods analyst Sanjay Sakhrani said in a research note following the company’s earnings call for the quarter ended June 30.
The digital card issuer posted a net loss of $0.65 million, or $0 per share. Analysts expected a net loss of $17.26 million, or a 3 cent loss per share. Revenue hit $150.4 million, an increase of 20% year over year and ahead of analysts’ consensus of $140.25 million.
BNPL has been growing at a
“This builds on years of collaboration with Klarna and demonstrates how customers can grow on our platform, both in offerings and geographies,” Marqeta’s interim CEO Michael Milotich said. “Over the past 4 years, Klarna has expanded from three programs to over 10 programs across many countries.”
Lending, including BNPL and expense management use cases, drove a majority of total purchase volume growth for Marqeta during the quarter and grew faster than the company as a whole, Milotich said during the company’s earnings call. JustTPV grew 29% from the prior-year period to $91.4 billion.
Going forward, BNPL will continue to be a major focus for Marqeta as it looks to
“We have been building a new capability that leverages our issuing expertise and BNPL relationships to capitalize on evolving industry trends,” Milotich said. “This capability embeds within apps and allows consumers to receive multiple BNPL options at purchase while paying with their existing debit card, increasing both distribution and user engagement.”
Marqeta wants to eventually make BNPL available as a flexible credential feature in all of its debit card products.
Marqeta has multiple issuing partners and BNPL customers integrating and testing that service, and is looking toward a limited release before the 2025 holiday season, with a broader launch happening in 2026 with more partners.
“What this does is for our issuing partners, it just differentiates their product and allows them to offer more value to their consumers. So it just becomes a better value proposition for them so they get higher engagement, ” Milotich said. “And for our buy now/pay later customers who are partners in this effort, we’re really bringing them distribution.”
KBW’s Sakhrani said that Marqeta’s focus on BNPL was a step in the right direction for the fintech. “In our discussions with management, Marqeta conveyed that while BNPL momentum is strong, the company is not baking it into the back half of 2025, which suggests it could be a source of upside.”