Australian-headquartered payments fintech Afterpay selects Marqeta to help accelerate its growth in the US market.
In particular, Marqeta will be Afterpay’s US issuing partner.
Moreover, Marqeta will market and support new innovative product offerings for Afterpay customers.
Buy-now-pay-later platform Afterpay enables merchants to allow shoppers to receive products immediately and pay in four instalments.
The service is free for customers who pay on time. The idea is that this helps consumers spend money responsibly, without incurring interest, fees or revolving and extended debt.
Afterpay’s digital platform is offered by more than 43,000 merchants worldwide. with 7.3 million customers active.
Afterpay in the US: 3.6 million customers
For example, last year Afterpay active customers in the US hit 3.6 million. This now exceeds its 3.1 million active customers in Australia and New Zealand. Afterpay is also live in the UK, with around 600,000 customers and 400 merchants.
Rapid US growth means that the country now represents over 30% of the group’s total underlying sales.
On the other hand, Afterpay remains loss-making. It posted a statutory loss before tax of A$31.6m for the first half of fiscal 2020 (H1FY19: loss of A$22.2m).
Marqeta says that its global modern card issuing platform has brought speed and efficiency with the world’s first open-API platform.
It adds that its payments platform accelerates on-boarding new merchant customers and powers a seamless virtual experience for Afterpay customers.
150 million cards issued to date
Marqeta has issued close to 150 million cards to date. It operates globally in the US, Canada, Europe. In addition, it is certified to process payments in 10 markets in Asia-Pacific through a partnership with Visa.
“Afterpay helps the world’s best brands connect with a new generation of customers who want to shop in a way that gives them control and the ability to budget their own money,” says Kareem Al-Bassam, Chief Payments Officer, Afterpay. “For this reason, we are seeing tremendous business momentum. This new partnership with Marqeta provides us with a platform that will help us scale our US business.”
“Marqeta is thrilled to be partnering with Afterpay in the United States. We also look forward to working together in additional markets,” adds Omri Dahan, Marqeta Chief Revenue Officer.