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Payment Tech Company Powering Cash App Payments Files IPO


beincrypto.com 15 May 2021 12:53, UTC
Reading time: ~2 m

The payment tech company Marqueta has filed its Initial Public Offering (IPO) amid a 123% annualized revenue growth in Q1. 

According to reports, Marqueta announced its intention to go public on May 14. Accompanied by the fact that its revenue growth has risen to $108 million. It also reported that its net loss had shrunk from the $14.5 million recorded in 2020 to $12.8 million.

The company, founded in 2010, deals in payment technology. Including that which powers the popular Cash App for peer-to-peer payments. In addition, it is also behind the tech powering Square’s debit card for small business owners. In light of the Q1 2021 report, Square accounts for 73% of Marqueta’s net revenue, an increase of 3% from 2020.

On the private market, trades currently value Marqueta around $16 billion. That value is based on the 484.4 million shares (both Class A and B) listed in the company’s prospectus to investors.

Marqueta’s technology is designed to detect potentially fraudulent transactions and ensure the proper routing of customer money. Most recently, they announced a partnership with financial pioneer Swissquote, Switzerland’s leading bank in online trading services, including crypto. According to the fintech company’s official Twitter, they will power an “all-in-one app that will connect banking and trading via a virtual card.”

Positive things for Cash App

Marqueta’s payment technology powers Square’s Cash App, which reported an overall quarterly profit of $964 million earlier this month. In a letter issued to shareholders, the app recorded a growth of 79%, from the $539 million it reported in profits this time last year. 

The report also revealed Bitcoin (BTC) revenue of $75 million. According to reports, the $964 million revenue for Q1 means that Square sold $1 billion worth of BTC in that quarter.

Square executives came out in support of BTC this week, including their founder and Chief Financial Officer. Amrita Ahuja, CFO for Square, announced on her Twitter that there would be no changes to the company’s BTC strategy.

“We’re deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative.”

Jack Dorsey, founder of both Square and Twitter, and long-time supporter of BTC, responded to the CFO by saying:

“bitcoin changes everything for the better. And we will forever work to make bitcoin better.”

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