According to PYMNTS.com, Marqeta just reported a massive $98 billion in total processing volume for Q3, representing 33% year-over-year growth. CEO and CFO Mike Milotich highlighted the company’s “robust” results during Wednesday’s investor call, emphasizing both growth momentum and rapid profitability improvements. The most telling number wasn’t the volume though – it was the $30 million in adjusted EBITDA, a stunning 236% increase from the same quarter last year. Marqeta’s embedded finance capabilities are driving expansion across expense management, gig economy payroll, and business loyalty sectors. The company is positioning itself as the infrastructure behind brands turning into banks.
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The Embedded Finance Engine
Here’s the thing about Marqeta’s model – it’s basically the plumbing behind the scenes. Every time someone swipes a card issued through their platform, Marqeta takes a tiny cut. That high-volume, low-margin approach only works when you’re processing insane numbers, which they clearly are. But what’s really interesting is how they’ve evolved beyond just being card issuers for fintech startups.
Now they’re going after much bigger fish. Their recent deal powering credit programs for business loyalty platforms shows they’re moving upmarket. Instead of just processing transactions, they’re helping companies turn customer relationships into financial relationships. And that’s where the real money is.
The Profitability Pivot
Let’s be honest – the market’s gotten tired of growth-at-all-costs stories. A 236% jump in adjusted EBITDA matters way more than it would have two years ago. Marqeta seems to understand that the rules have changed. They’re balancing their traditional high-volume processing with what they call “program management” – deeper integrations that include everything from logistics to compliance.
So what’s driving this profitability surge? It looks like a combination of scale benefits and smarter customer selection. They’re not just chasing volume anymore – they’re chasing profitable volume. And in today’s economic climate, that’s exactly what investors want to see.
Global Ambitions
The TransactPay acquisition earlier this year continues to pay dividends. Marqeta’s now using that European foothold to help US customers expand overseas seamlessly. Company executives mentioned expansion with a North American expense management customer into Europe as a prime example.
Think about it – if you’re a US fintech scaling globally, do you want to deal with different card issuers in every market? Or would you rather work with one provider that can handle everything? That’s the moat Marqeta’s building. Their platform approach combined with their leadership’s experience in global payments creates a compelling package for companies with international ambitions.
Beyond Fintech
The real story here might be Marqeta’s move beyond traditional fintech customers. They’re now working with non-financial enterprises that want to embed financial services into their offerings. We’re talking about companies that previously never thought about becoming banks suddenly realizing they can offer credit, loyalty programs, and payment solutions.
Basically, Marqeta’s betting that every company will eventually become a fintech company. And they want to be the infrastructure that makes it possible. Given their latest numbers, that bet seems to be paying off pretty well so far.
