Global card-issuing platform Marqeta and payments provider Mastercard announced a strategic partnership with payment engine Paycast to launch a new card product aimed at helping marketplace sellers get their money faster.
The partnership will see Paycast integrating with Marqeta’s open API platform to build virtual cards that give sellers the ability to participate in the authorization process, set rules for anti-fraud measures and provide loyalty and reward opportunities. Mastercard will then enable the use of these virtual cards on its global card network.
According to a release, Marqeta and Mastercard have already provided strategic funding to Paycast’s parent company, SPG, for the proposition though no amount was disclosed.
“In the past 12 months we’ve seen a significant growth in online marketplaces, yet at the same time there is a lack of payment options for acquirers, marketplaces and their sellers,” said Elle Kim, Managing Director of Paycast. “Paycast aims to rectify that by bringing to market a new solution that will provide sellers with one single place to manage all their payments.”
Specializing in high priority transactions, Paycast allows online merchants, e-commerce platforms and marketplaces to direct and control B2B and P2P payments to pay online sellers, gig-economy works and freelancers in an easy and secure way.
Previously, the company was named to Mastercard competitor Visa’s Fintech Partner Connect in 2020, an initiative that provides financial institutions and merchants in Europe with enhanced capabilities and mentorship. Paycast was also an initiate of Mastercard’s Start Path program dedicated to supporting early-stage startups led by founders from backgrounds underrepresented in the fintech space.
“We are thrilled to be supporting Paycast on the next step of their journey,” said Scott Abrahams, Senior Vice President, Business Development & Fintech, Mastercard UK & Ireland. “From our technology and data assets to our global ecosystem of partners and dedicated programs, we are leveraging our tools and expertise to iterate with Paycast at every stage, transforming bold ideas together.”
Marqeta and Mastercard have held a longtime business relationship that saw Mastercard making a “financial investment” in the California based fintech in Oct., 2020, to “deepen their global partnership.” The two companies having worked together since 2014 in Europe and North America helping fintechs launch new cards and products, such as the Square Card.