Gardner said that the company had initiated a new partnership with One, the startup backed by Walmart and Ribbit Capital.

“One has chosen Marqeta to enable the delivery of products that help customers get paid, spend, save and grow their money,” Gardner said during the call. “Specifically, we will start by powering their One card and Marqeta will look to support them as they expand to other products and services.”

Marqeta also counts major buy now-pay later companies, including Klarna and Affirm, as clients, but revenue flowing from those ties is dwarfed by the business from Block, which has accounted for about 70% of Marqeta’s business in each of the past two years.

The company’s third-quarter net loss widened to $53.2 million over the year-earlier period as net revenue rose 46% to $191.6 million, according to its Nov. 9 press release.

Now, Marqeta faces the task of renegotiating its contracts with Block for the services provided to Cash App and Square, with the agreements expiring in March and December of 2024, respectively. While the agreements automatically renew for one-year periods, terms could change in the future and Gardner suggested talks are ongoing as to how the contracts may be renewed.

The company’s annual filing with the Securities and Exchange Commission makes clear what’s at stake. “There can be no assurance that we will be able to continue our relationships with our Customers on the same or more favorable terms in future periods or that our relationships will continue beyond the terms of our existing contracts with them,” the March filing said.

Last month, Marqeta said it’s also adding banking services, allowing its business clients to tap its software tools to create customized banking services for their customers.

In August, Gardner said he would exit his role as CEO and become executive chairman at the company. While he plans to remain active at Marqeta in that role, several executives have left the company since its 2021 initial public offering.

“To maximize the next stage of growth as we diversify the business and the capabilities we offer and the geographies we serve, we want to be very proactive and begin our succession-planning process by looking for the next CEO to lead Marqeta,” Gardner said during the company’s second-quarter earnings call in August. 

Gardner, who founded the Oakland, California-based company in 2010, owns about a third of the company, according to the company’s proxy statement showing ownership as of April 18.

By Lynne Marek on Nov 10, 2022
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