Marqeta Will Process for Block’s Cash App Card for Another Four Years

Marqeta Inc. late on Tuesday announced it will continue processing transactions for Block Inc.’s Cash App card product for another four years under a new agreement between the companies. The renewal will see San Francisco-based Block using Marqeta’s issuing platform through June 2027.

The announcement comes days after Block reported transaction fees from Cash App card helped drive a 43% year-over-year increase in its June-quarter subscription and services revenue, to $1.03 billion. Block said its instant-deposit feature and “other factors” also contributed to the increase. The card complements Cash App, a popular financial-services app that produced $1.16 billion in revenue in Block’s June quarter, excluding Bitcoin proceeds.

But the renewal is also a big deal for Block’s Oakland neighbor, 13-year-old Marqeta, which counts Doordash, Uber, and Klarna among its major customers. The company reported total processing volume of $54 billion for the quarter, up 33%, helping to drive net revenue up 24%, to $231 million.

The company also announced a thrust outside the U.S. market, striking a deal with Fitbank, a Latin American banking-as-a-service platform, to enter Brazil.

“We grew our business to ever-increasing levels of scale, exceeded our sales bookings goals again, and reduced our cost structure,” said Simon Khalaf, Marqeta’s chief executive, in a statement. “Our execution has been strong, including accelerating our go-to-market motion, enhancing our product offering, and extending our partnership with Cash App.” Khalaf, a veteran technology executive with companies including Yahoo and Novell, took over the CEO role in January from founder Jason Gardner, who assumed the position of executive chairman.

For the quarter, Marqeta reported a net loss of $58.8 million, up 32% from the same period last year, on a 23% rise in operating expenses, to $154 million.