This article was originally published on TipRanks.com.
Global modern card issuing platform Marqeta, Inc. (MQ) has expanded its partnership with Swedish fintech company Klarna Bank to include 13 new European nations. Following the announcement, shares of Marqeta were trading 6.5% up, at the time of writing, in the pre-market trading session on Tuesday.
Marqeta’s platform allows its customers to create customized and innovative payment cards. Apart from Klarna Bank, Marqeta’s customers include Affirm (AFRM), Square (SQ), Instacart and DoorDash (DASH).
Details of the Expanded Partnership
The partnership expands the companies’ reach to the U.K., Germany, France, Italy, Spain, the Netherlands, Poland, Belgium, Austria, Ireland, Norway, Finland and Denmark.
The expansion began in May with the launch of Klarna’s shopping application in the U.K., followed by expansion into 12 more markets in September. Marqeta supports Klarna’s one-time virtual cards in all these 12 markets.
The Chief Technology Officer at Klarna, Koen Kӧppen, said, “Marqeta’s tech platform has helped us quickly realize new or improved products in complex markets. We’re happy to now work with Marqeta in Europe to further leverage this expertise as we develop our offering.”
The CEO of Marqeta, Jason Gardner, said, “Marqeta’s partnership with Klarna is an incredible example of what our modern card issuing platform can support, helping them stand up and scale new payments experiences across three continents now.”
Marqeta and Klarna first partnered in 2018 when Klarna started utilizing Marqeta’s platform in the U.S. for its one-time virtual card, which could be used to complete any purchase on its mobile shopping app.
Thereafter, with Marqeta’s support, Klarna launched its services in Australia last year and recently in New Zealand. (See Insiders’ Hot Stocks on TipRanks)
As part of the partnership, Klarna makes use of Marqeta’s Just-in-Time Funding feature as well as its suite of more than 300 open APIs.
Wall Street’s Take
Last month, Mizuho Securities analyst Dan Dolev assigned a Hold rating to the stock with a price target of $27 (52.5% upside potential) after the company released its third-quarter financial results.
Overall, the stock has a Hold consensus rating based on 2 Buys, 2 Holds and 1 Sell. The average Marqeta price target of $33.20 implies an 87.6% upside potential. Shares have lost 42% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Marqeta’s performance.
According to the tool, compared to the previous year, the company’s website traffic registered an 84.1% increase in global visits in October. Moreover, the website traffic has gone up 115.4% year-to-date against the same period last year.
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