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The World Is Changing – The Transition To Contactless Payment Is Real

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August 11th, 2020


Learning, Themes


Andreas Bezner

Stableton Is Here To Unlock Your Chance To Invest In Pre-IPO Deals Well, it’s easy to say that the world is changing – because that’s inevitable, right? But when it comes down to it, the world of contactless payment is really changing – and quick, too. Think about it: with the creation of debit cards, cash was quickly phased out. And while it hasn’t been phased out entirely, how often do you pay for consumables with cash? With that in mind, the idea of contactless and cashless payments has become even more important in a world that is still reeling from the COVID-19 pandemic. Remember how we said the world is changing? In the wake of COVID-19, the world is certainly leveraging new technologies and new business models to come out stronger, more efficient, and safer than ever before. According to Marqeta, the API-based issuer-processor from California, “society is contemplating a cashless future.” Likewise, Demetra Airaudi, the CEO of Square said, “We are seeing people pull out a card for smaller and smaller purchases. While many believe a truly cashless society is still a ways away, the jingling of coins in your pocket or at the bottom of your purse may soon be a thing of the past.” So, what does this mean for businesses? Well, let’s take a look at a pre-IPO company that has been disrupting the industry, and in the very near future, they’ll be ready to take over the industry altogether as a contactless payment solution that has the potential to render cash obsolete. What Is Marqeta? Marqeta is the premier payment issuer and processor behind Affirm, DoorDash, Instacart, Square, and Uber. With operations in Canada, Europe, Australia, and the US, Marqeta is strategically positioned for a successful IPO. A recent profile from Business Insider outlined Marqeta’s steady growth throughout the last number of years, highlighting its $260 million funding round back in 2019. From Business Insider: “Marqeta closed a Series E funding round worth $260 million in 2019 at a valuation of almost $2 billion. The round was reportedly oversubscribed, leading the firm to be selective about its partners, and the funding was earmarked for expansion to new regions and launching new cards. These efforts could propel Marqeta’s performance to new heights as they should help it reach new companies and issue more cards than its current total of around 140 million.” To put that into perspective, Marqeta has issued 140 million cards for businesses all around the world. According to Marqeta, if it were “counted as a singular card issuer” it would be one of the top 25 largest card issuers in the United States. As you can see, Marqeta is the real deal. But what exactly is the heart of their business model? Marqeta’s Core Value Propositions When it comes down to it, Marqeta is a powerful company and it’s poised to dominate the needs of its next generation of customers – think companies like Instacart, Kabbage, Financeit, Square, Bookit, Affirm, Alipay, and others. Fast Issuance Marqeta’s main selling point is the fact that it enables businesses to instantly create and customize physical, virtual, and tokenized payment cards that they can use to offer services, to issue payments, and much more. A Comprehensive Funding Gateway A critical selling feature of Marqeta is that it offers virtually unparalleled control for issuers to authorize and fund cards. Why is this important? Because as these issuers acquire new customers and require more payment solutions, they can instantly issue new cards and scale their operations seamlessly. Dynamic Spending Controls Because Marqeta is an API-based payment issuer, businesses can instantly restrict authorizations in real-time, ultimately reducing fraud and providing a clean fail-safe to prevent against theft and illegitimate payments. An Intuitive Program Dashboard For companies like DoorDash and Uber, managers need a way to view their cards in real-time in a simple, easy to use dashboard that they can view for hours on end. With Marqeta, users can quickly manage programs and configure accounts across their workforce in real-time. Integrated Analytics With Cloud-based data reporting and business insights, users can take advantage of real-time metrics to track transactions and make informed business decisions with the passing of every moment. The Opportunity The early reports are in, and it’s reported that Marqeta could potentially reign in $9+ billion in its IPO, virtually doubling its current valuation which sits at $4.5 billion. What does this mean for an investor? It means that you could potentially cash in on one of the largest IPOs in recent memory – especially since the COVID-19 pandemic completely disrupted the world as we know it. Throughout this article, we’ve spoken at length about the reasons why contactless payment and cashless payment solutions are relevant, and why they could potentially become more relevant than ever before as we transition into a post-COVID world. With that in mind, it doesn’t take much to consider the potential return that could come along with Marqeta’s IPO. Put simply by Forbes, “Marqeta powers payments for businesses that issue debit cards to their workers and customers, giving them more control over which transactions are approved.” And with so many huge clients already on board, one can only imagine that the next generation of digital commerce will want to leverage Marqeta’s value proposition to get their feet off the ground. Stableton Is Here To Help You Make The Most Out of This Opportunity Here at Stableton, we’re proud of the network that we’ve created. It is our mission to break down entry barriers to private markets and are giving access to exclusive late-stage venture deals with investment amounts as low as CHF 10’000. We work with individual investors, institutions, and investment professionals to deliver these outstanding opportunities. Contact us today to learn more about late-stage venture and pre-IPO investing.

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