Marqeta Signs Multi-year Contract With Scalapay To Deliver Buy Now Pay Later Across Europe

(RTTNews) - Marqeta Inc. (MQ), a card issuing platform that companies use to launch and manage their payment card programs said on Tuesday that it has inked a five-year contract with Scalapay, a Buy Now, Pay Later or BNPL provider, to leverage Marqeta's platform to issue cards both online and in-store.

According to the contract, Marqeta will issue virtual cards for online and in-person transactions to create a more seamless payments experience for both merchants and consumers.

By leveraging Marqeta's Just-in-Time Funding feature, once a Scalapay consumer is approved for their loan and completes a purchase, a virtual card is instantly created and funded for the exact loan amount.

This card can be immediately used for payments both online and in-store through a digital wallet and via the existing checkout or POS to allow the customers to finance their purchase.

According to Marqeta's fall 2022 State of Credit survey, more than 1-in-3 people or 35 percent of the surveyed said that they now use BNPL more than credit cards.

With more than 5,000 stores and 7,000 physical points of sale, Scalapay's pay in 3 or 4 installments' products reaches over 5 million users across Europe.

MQ was trading up by 2.82 percent at $5.84 per share in the pre-market trade on the Nasdaq.