Marqeta has announced a new “Reserve Financing Product.” Marqeta Reserve Financing is tailored to the needs of companies struggling with the logistical, practical and administrative burdens of funding a reserve account to launch new payment card programs and keep it actively replenished with funds.
Marqeta Reserve Financing is described as addressing a major pain point in launching payment card programs.
Marqeta explains that when setting up prepaid or debit card programs, issuing banks typically require companies to prefund a reserve account to keep up with anticipated card spend. This can become a major administrative roadblock as it can tie up large amounts of funds.
Marqeta Reserve Financing integrates into the customer’s existing working capital process, which sits alongside Marqeta’s issuing platform. Customers can also direct Marqeta to manage interest payments from their card program’s economics
“Reserve funding requirements can be a huge commitment for payments innovators operating at scale, and so we developed Marqeta Reserve Financing,” added Omri Dahan, Chief Revenue Officer at Marqeta. “The reserve is always available when you need it, opening up new possibilities for customers. Coupled with our best-in-class modern card issuing platform,Marqeta Reserve Financing frees our customers to focus on what they do best: creating industry-defining payment and commerce experiences.”