Marqeta Raises $14 Million, Reveals Facebook Card Connection (May 16, 2013)
May 16, 2013
Marqeta today announced plans for a major expansion with the $14 million raised in its latest funding round. The company also went public with the news that its stored value payments platform is powering the Facebook Card launched earlier this year. The Emeryville, Calif.-based startup last year rolled out its stored value platform that enables consumers to load funds into merchant-specific accounts and earn rewards with each payment, a concept it piloted in the San Francisco Bay area. Marqeta includes a physical card and virtual wallet available on iOS and Android devices where consumers can track their rewards, balances and gift cards through a single account. Marqeta now plans to expand its platform to a raft of new national merchants, Jason Gardner, the company’s founder and CEO, tells Paybefore.
Operating as a white-label platform behind the scenes for Facebook’s gift card program, Marqeta also is in discussions with other social media networks interested in offering merchant-specific gift and loyalty cards, Gardner says. “This is just the first of several deals we have in the works,” he notes. Facebook launched its card in February, which enables users to purchase a preloaded card that is mailed to recipients, who may use it online and at brick-and-mortar retailers including Target, Walgreens and Burger King. Facebook Card recently added more merchants to the program. Marqeta uses the Discover Network to authorize and clear transactions on its platform.
For merchants, Marqeta’s model provides a new opportunity to connect more directly with consumers who may opt in to receive rewards, providing merchants with valuable data, Gardner says. “Most gift cards are anonymous and merchants cannot see how a consumer uses the card, but our platform provides that connection so merchants can see that data.”