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Marqeta expands to Brazil
Marqeta expands to Brazil, Affirm's stock surges on the optimistic outlook for its "Debit+" card, and Shopify partners with the streaming platform Roku
“Nothing changes sentiment like price,” they say. Most Fintech stocks are rallying this year, so, perhaps, that’s the reason why it feels like the worst is over for the industry. Hope there is more to that than just the price.
At least the news stories have been mostly positive lately:
Marqeta expands to Brazil through a partnership with Fitbank,
Affirm's stock surges on the optimistic outlook for its "Debit+" card, and
Shopify partners with the streaming platform Roku
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Marqeta Expands to Brazil
Marqeta (NASDAQ: MQ), a global modern card issuing platform, announced its expansion into Brazil through a partnership with Fitbank, a Latin American Banking-as-a-Service platform. This move allows Marqeta's existing global customers to easily expand into the rapidly growing Fintech market in Brazil, as well as provides local Brazilian Fintech companies with access to Marqeta's modern card issuing platform. Fitbank will serve as a Marqeta customer, using it as a payment processor, and will act as a BIN sponsor for Marqeta's customers aiming to launch in Brazil. With this expansion, Marqeta can operate in over 40 countries worldwide.
Last month, Marqeta announced that it is closing its operations in Australia as part of a series of cost-cutting initiatives aimed at improving efficiency. The company has eliminated ten jobs in Australia and two in Singapore as it scales back its services in the Asia-Pacific region. Marqeta had previously announced plans to reduce its workforce by 15% or approximately 150 employees. Despite the closure, Marqeta will continue to serve its customers in Australia, including Block’s Afterpay, Klarna, and Zip, and provide support for those looking to launch operations in the region.
Affirm's Stock Surges on Optimistic Outlook for "Debit+" Card
Affirm’s stock (NASDAQ: AFRM) surged 9.68% yesterday on positive comments from Mizuho analyst, Dan Dolev, on the company's “Debit+” product. Dan Dolev highlighted the favorable Google search trends for Affirm's debit-card product, which allows customers to split purchases into installments. Dolev compared the growing interest in “Debit+” to the early buzz surrounding Cash App’s “Cash Card”, suggesting that it could lead to a higher compound annual growth rate for Affirm's Gross Merchandise Volume from a mid-20% figure to a mid-30% figure.
“Debit+” card has been in limited beta since early 2021, with the company hesitating to do a full rollout before it is comfortable with the product’s profitability. In the first quarter of this year, Affirm added Debit+ card to its main app and saw a seven-fold increase in user transaction frequency. “Over 80% of all retail spend occurs at physical retail, but less than 5% of Affirm’s volume is offline,” commented Max Levchin on the ambition behind the launch of “Debit+” product in the company’s latest shareholder letter.
Shopify Partners with Streaming Platform Roku
Shopify (NYSE: SHOP) partnered with Roku (NASDAQ: ROKU), a leading TV streaming platform, to allow viewers to make purchases directly from Shopify merchant ads on their TVs. This integration enables viewers to learn more about products featured in ads and purchase them by using their Roku remote control. This collaboration introduces a new advertising channel for independent Shopify merchants on TV streaming and offers a seamless checkout experience within Roku Action Ads. Several brands, including True Classic, Ergatta, and Olly, have already joined as initial partners.
“This is a great example of Roku’s unique platform position to make advertisers unmissable across the streamer’s journey, from power on to purchase complete,” commented Peter Hamilton, Senior Director of Ad Innovation at Roku. In 2021, Roku launched an app that allows Shopify merchants to create, manage, and measure TV streaming advertising campaigns. This partnership enabled Shopify merchants to leverage TV advertising to strengthen their brands and increase revenue, offering audience targeting and measurement capabilities not available in traditional and cable TV advertising.
I’ve spent a lot of time thinking about comparable companies for Affirm, and realized that perhaps, the best ones would be American Express (NYSE: AXP) and Discover Financial (NYSE: DFS). All three companies make money from two key sources: a) interest income from their loan portfolio, and b) commission income from their network. Needless to say, the success of the Debit+ card would make Affirm resemble American Express and Discover Financial even more.
🇺🇸 Remote, United States
🇺🇸 Remote, United States
🇬🇧 Remote, United Kingdom
Customer Success Manager (EU)
🇬🇧 Remote, United Kingdom
🇺🇸 Remote, Americas
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Cover image source: Marqeta
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