Marqeta
Marqeta runs the card-issuing infrastructure behind Cash App, Block, and other fintech card programs.
The call
Marqeta turned GAAP-profitable and is signing new logos, but its biggest customer is walking toward the door just as Visa and Mastercard catch up on features.
Marqeta builds the behind-the-scenes technology that lets companies like Cash App issue their own payment cards to users. It was once the only real option because it offered a modern, cloud-based system that older competitors like Visa and Mastercard did not have, but that gap has closed. Now Visa, Mastercard, and newer challengers like Lithic and Stripe Issuing all offer the same thing, which means Marqeta must compete on price and service. The one thing that matters most is whether Cash App, which accounts for 42 percent of Marqeta's revenue, renews its contract when it expires in June 2027, because Cash App has been building its own payment system and cutting costs, so it may leave entirely.
Why
01
AI pressure: Block's internal AI-driven engineering buildout. Block cut staff while pivoting to AI and could use that capacity to build its own card issuing, cutting out Marqeta by 2027. Could AI do the core job? Unlikely.
02
Bigger players: Visa (via DPS) and Mastercard (via BVNK). Visa's DPS and Mastercard's BVNK now offer the same API-first, cloud-native issuing that used to set Marqeta apart. Could a giant copy it? Probably.
03
What protects it. BIN sponsorship, PCI DSS certification, and the European EMI license from TransactPay make switching issuers slow and costly.
What would change this call
Block issues no new cards via Marqeta and gives zero new-issuance guidance through H2 2026 earnings. Confirms Block is actively shifting issuance in-house ahead of the June 2027 contract deadline.
Block's Marqeta-revenue share drops below 35% or renewal terms leak before June 2027. Signals whether diversification is offsetting the loss of Marqeta's largest customer.
A named enterprise logo is announced switching to Visa DPS, Mastercard/BVNK, or Adyen Issuing. Would show incumbents actively winning deals rather than just closing a feature gap.
Block's Marqeta-revenue share drops below 35% or renewal terms leak before June 2027. Signals whether diversification is offsetting the loss of Marqeta's largest customer.
A named enterprise logo is announced switching to Visa DPS, Mastercard/BVNK, or Adyen Issuing. Would show incumbents actively winning deals rather than just closing a feature gap.
Key numbers
- Block was 42% of Q1 2026 revenue, down from 68% in 2023
- Q1 2026 net revenue $166M, up 19% year over year
- Market cap about $1.85 billion after 1-for-4 reverse split
Named risks
- Block/Cash App revenue concentration (42% of Q1 2026 revenue) unwinds at June 2027 contract expiry.
- Competitive pressure from Visa DPS, Mastercard/BVNK, Stripe, Lithic, and Galileo erodes take rates.
- Block's AI-driven insourcing push could fully internalize card issuing by 2027.
- Reverse stock split reflects prior sustained share price weakness near $4.
- Hiring slowdown (job postings down ~28% in 2025) could signal cautious growth outlook.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Visa (DPS) | gaining on | Visa DPS expanding processing capabilities, named as threat by Marqeta CEO, Feb 27, 2026 |
| Mastercard (via BVNK) | gaining on | ~$1.8B BVNK acquisition signals issuing-adjacent expansion, cited Feb 27, 2026 |
| Block (Cash App) | losing to | Largest customer diversifying away, contract ends June 2027, no new cards expected H2 2026 |
| Stripe Issuing | contesting | Matches Marqeta's API-first architecture, cited as competitive parity threat, Feb 2026 |
| Lithic | contesting | Owns its own bank/BIN, competes directly for API-first issuing deals |
| Galileo (SoFi) | contesting | Bank-processor rival strong in neobanking and LatAm issuing |
Questions people ask
- Is Marqeta profitable in 2026?
- Yes for the first time on a GAAP basis: Marqeta posted GAAP net income of $8 million in Q1 2026 (quarter ended March 31, 2026), its first-ever GAAP-profitable quarter, and guides to roughly $15 million GAAP net income for full-year 2026, per its May 5, 2026 earnings release.
- What is Marqeta's biggest risk right now?
- Customer concentration: Block Inc (Cash App/Square) was 42% of Marqeta's revenue in Q1 2026, down from 68% in 2023, with its contract expiring June 2027 and management expecting no new Cash App card issuance in H2 2026, per PaymentsDive, February 27, 2026.
- Who are Marqeta's biggest competitors?
- Marqeta competes with Visa's Direct Processing Services (DPS) and Mastercard (via its ~$1.8 billion BVNK acquisition), plus API-first issuers Stripe Issuing, Lithic, Galileo (owned by SoFi), Highnote, and Adyen, all named as active rivals as of February 2026.
- Could AI replace Marqeta's card-issuing business?
- AI cannot replicate Marqeta's regulated plumbing (BIN sponsorship, EMI licensing via TransactPay, PCI DSS compliance), but AI is enabling its largest customer, Block, to consider insourcing issuing after Block cut about 40% of its workforce while pivoting to AI in early 2026.
- Is it safe to take a job at Marqeta in 2026?
- Headcount has declined modestly, not collapsed: Revelio Labs estimates about 848 employees as of December 2025, down 7.9% from 921 in 2023, with job postings down about 28% in 2025, but no mass layoffs have been reported.
- Who owns Marqeta?
- Marqeta is an independent public company with no parent, trading on Nasdaq as MQ since its June 2021 IPO; as of July 21, 2026 its market cap was roughly $1.85 billion at a share price near $17.57.
Timeline
- 2026-07-21Expensify expands Marqeta-powered card program into UK and EU
- 2026-06-301-for-4 reverse stock split takes effect on Nasdaq
- 2026-06-06Marqeta partners with Banking Circle to expand money movement into 30 more European countries
- 2026-05-18Lukasz Strozek becomes Chief Technology Officer
- 2026-05-05Q1 2026 results: first GAAP-profitable quarter, $8M net income, TPV $112B
- 2026-03-01Real-Time Decisioning platform upgraded with AI-powered fraud risk score
- 2026-02-27Marqeta discloses Block contract runs through June 2027, no new Cash App cards in H2 2026
- 2026-02-09Patti Kangwankij becomes CFO
- 2025-09-01Mike Milotich confirmed as permanent CEO
- 2025-08-07Marqeta closes acquisition of TransactPay, gaining EMI license in UK/EEA
Revision history
24 July 2026
First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Board of directors
- Marqeta Announces Reverse Stock Split (2026-06-29)
- Marqeta to implement 1-for-4 reverse stock split Tuesday (2026-06-29)
- gurufocus.com (2026-07-21)
- Marqeta completes TransactPay acquisition (2025-08-07)
- TPV, Revenue & Block (2026-06-05)
- Marqeta Reports First Quarter 2026 Financial Results (2026-05-05)
- Marqeta (MQ) Earnings Dates, Call Summary & Reports (2026-06-21)
- Marqeta (MQ) Q1 2026 Earnings Transcript (2026-05-05)
- Marqeta flags Cash App hit (2026-02-27)
- Scaling Profitable Growth (2026-03-02)
- Expensify Expands Collaboration with Marqeta (2026-07-21)