Payments fintech Marqeta saw growth in its total processing volume during the second quarter as consumer demand for non-traditional banking and digital banking channels increased. 

According to Marqeta’s July State of Payment report, which surveyed 4,000 consumers in June, 63% of consumers between 18 and 34 years old said they would be open to banking with a non-traditional financial service provider. 

“These trends have given modern and digital banks a genuine foothold in the market,” Chief Executive Simon Khalaf said during the Aug. 7 Q2 earnings call. 

Interest in non-traditional banking has brought growth to Marqeta, including a 32% year-over-year increase in total processing volume, reaching $71 billion in Q2, according to the tech provider’s earnings release. 

“We anticipate more momentum to come in 2025,” Khalaf said. 

In Q2, Marqeta announced these deals: 

• Varo Bank: On Aug. 6, Varo selected Marqeta for its card processing business, Khalaf said during Marqeta’s earnings call.

With Marqeta, Varo will migrate its customers from its current processor in 2025, he said. 

• Affirm: Marqeta started working with Visa and Affirm to offer a new credit card product, Visa Flexible Credential, according to a July 25 Marqeta release. 

• Zoho: Zoho signed with Marqeta, Khalaf said during the call. 

Zoho, which serves 700,000 businesses, selected Marqeta for its ability to deliver expense management and embedded finance solutions, according to Marqeta’s earnings release.

NOTEWORTHY: During Q2, Marqeta expanded its European operations, adding an office in Poland, according to a June 5 release. 

“With the launch of our new office in Warsaw, Poland, we’re now equipped to support more program management capabilities for our European customers, allowing us to deepen our already successful offering in the market,” Khalaf said during the call. 

MARKET REACTION: Marqeta shares were trading at $5.35 up 8.5% at market close Thursday. Marqeta has a market capitalization of $2.7 billion. 

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