Marqeta at Goldman Sachs Conference: Strategic Expansion and Growth

On Monday, 08 September 2025, Marqeta (NASDAQ:MQ) presented at the Goldman Sachs Communicopia + Technology Conference 2025, where CEO Mike Milotich outlined the company’s robust Q2 results and strategic plans. Despite potential revenue impacts from contract renewals, Marqeta remains focused on expanding its platform and diversifying its customer base, with a positive outlook on long-term profitability.

Key Takeaways

• Marqeta reported a 29% increase in Total Payment Volume (TPV) for Q2, driven by growth in lending and Buy Now Pay Later (BNPL) sectors.
• Adjusted expenses decreased by 7%, contributing to a record EBITDA quarter.
• The company is expanding into embedded finance, targeting larger financial institutions, and enhancing its European operations through the TransactPay acquisition.
• Marqeta aims to achieve a "rule of 40" metric, balancing gross profit growth with EBITDA percentage of gross profit.
• The impact of major contract renewals is anticipated primarily in Q4 and 2026.

Financial Results

• TPV Growth: Q2 TPV rose by 29%, marking a three-point acceleration.
• Gross Profit: Increased by 31%, with 8.5 points attributed to accounting changes; normalized growth was over 22%.
• Adjusted Expenses: Declined 7% year-over-year, driven by slower hiring, shifted marketing spend, and optimization initiatives.
• EBITDA: Achieved a record quarter in terms of dollars and margin.
• Renewal Impacts: Two major renewals are in progress, expected to lower gross profit growth by 4% and full-year growth by 2%.

Operational Updates

• Platform Capabilities: Focused on expanding capabilities to become a full-stack provider and improve customer interaction efficiency.
• Customer Base Diversification: Expanding into embedded finance and targeting larger financial institutions.
• Product Expansion: Developing a credit business alongside debit and prepaid offerings.
• Geographic Expansion: Rapid growth in Europe, with TPV over 100%, bolstered by the TransactPay acquisition.
• Value-Added Services: Expanding services such as risk, data, banking, and tokenization.

Future Outlook

• TPV Growth Expectation: Anticipates a moderation in TPV growth for the rest of the year.
• Growth Drivers: Europe and value-added services are expected to drive growth over the next 12-18 months, with credit as a medium-term opportunity.
• Contract Renewals: Aiming for renewals to become non-events in the future.
• Stablecoin: Engaging with partners to support potential stablecoin pathways.

Q&A Highlights

• BNPL Growth: BNPL constitutes a mid-teens percentage of TPV and is expanding rapidly.
• International Expansion: Europe leads in embedded finance, with the TransactPay acquisition enhancing Marqeta’s European offerings.
• Expense Management: Effective expense management contributing to growth, driven by newer companies using modern technology.

In conclusion, Marqeta’s presentation at the conference highlighted its strategic initiatives and growth prospects. For a detailed understanding, readers can refer to the full transcript below.

Full transcript - Goldman Sachs Communicopia + Technology Conference 2025:

Unidentified speaker: All right. All right, guys, we’re going to get started. Thank you, everyone, for joining. We are very excited to have Mike Milotich with us today. Mike has been the CFO of Marqeta since 2022. He’s been serving in the interim CEO role since February. This morning, Marqeta announced Mike’s appointment as permanent CEO and the company’s intention to search for a replacement CFO. Mike, thanks for joining us and also congratulations on the announcement today.

Mike Milotich, CEO, Marqeta: Thank you. Appreciate it.

Unidentified speaker: I think a lot of us saw the news coming. Congratulations again on being named CEO officially. Can you tell us where your focus has been for the last six months and what your goals are for the rest of the year now that you’ve been formally named official CEO?

Mike Milotich, CEO, Marqeta: Yeah, no, thank you. I’ll probably be making some forward-looking statements. Please look at our 10K and 10Q for risk factors. I would say, you know, already before I took the interim CEO role, I was already very involved in the business, really almost all aspects of it. There wasn’t any sort of change in strategic direction or anything. I was already very much on board and supportive and was involved in the creation of that plan. What I’ve really been focused on in the last six months is really execution and just making sure that we narrow down our priorities and then we deliver on those priorities and we deliver them well. As I move now, I guess, into the permanent seat, I’ve already been operating this way for six months, so not a lot of changes.

I would say the areas that I’m particularly focused in are, one, from a platform capability perspective. I’ve been digging in to make sure that we are expanding the capabilities of the platform and becoming more of a full stack with a lot of services around our core processing capability. We want to be able to move faster. We want to be able to deliver new capabilities for customers quicker and onboard them faster. We just want to make sure the platform is just a lot more efficient and can be much faster. The second area that I’m particularly focused on is making sure we’re easier for our customers to interact with. We are in a very complex business.

A lot of times there’s a lot of complexity because you have a lot of cross-functional collaboration because you need a lot of expertise, both technical, you know, compliance expertise, finance expertise, et cetera. What we’ve been really focused on is making sure that we can do that as effectively as possible. Therefore, we can move faster for our customers. We’re also, you know, leveraging a lot of AI tools to get more effective, for example.

Unidentified speaker: Yeah, you recently reported Q2 results that were ahead of expectations. Could you recap some of the puts and takes there, and the overall implications for the rest of the year from the strong results?

Mike Milotich, CEO, Marqeta: Yeah, I mean, the results were really strong. Our TPV grew 29%, which was a three-point acceleration, which we had not expected. It was really strong across the board in our major use cases with lending and Buy Now Pay Later (BNPL) being particularly strong, where we actually saw all 10 of our top 10 customers in that use case, their TPV growth accelerated from Q1 to Q2. A really strong outperformance there. Our gross profit grew 31%, which includes about 8.5 points of a change in accounting related to our network incentives. On a normalized basis, a little over 22%, which was much stronger, mostly driven by the strong TPV growth, but also favorable business mix as all the TPV upside came from our non-Block business, so a little bit higher take rate on that business.

Our adjusted expenses actually declined year over year by 7%, which is about 10 points better than we had expected. Half of that is timing related, where we were just a little slower to onboard some new employees in the areas we’re investing, and we pushed some marketing out of Q2 into the second half. That was about half of the upside. The other half was really just execution of optimization initiatives. We’re really getting very good at sort of taking a lot of the waste out of the business, and that led to a record EBITDA quarter for us, both in terms of dollars and margin. Really strong performance. In terms of how it affects the rest of the year, I would just note, I guess, two things that are important.

One is that 8.5 point benefit we got in gross profit from the accounting change incentives turns to a headwind in both Q3 and Q4, and that’s a little bit of a change. The second thing is that the TPV growth was a little bit unexpectedly strong and again with a favorable mix. We don’t expect or we haven’t projected the TPV to remain that strong with that type of favorable mix for the rest of the year. We want to see the trend hold for a little while longer before we start including it in our forward-looking projections.

Unidentified speaker: I think one thing you mentioned was the change in the renewal timing expectations. Could you walk us through how that impacts or flows through the numbers?

Mike Milotich, CEO, Marqeta: Sure. At the beginning of the year, we talked a lot about we have two major renewals this year. Sort of the last two we have is the last three years we’ve renewed almost all of our business with revised economics. These were the last two. We, at the start of the year, said we thought they’d get done probably about mid-year. Therefore, in the second half, it would lower our gross profit growth by about 4% and therefore lower our growth for the full year by about 2%. As we’ve gotten into it and those discussions are ongoing, it’s taking a little bit longer than that. We’re still going to get them done long before the contracts expire. The timing is shifting out a little bit. Now we believe the impact of those renewals will start in Q4 with the full impact really not coming until 2026.

As a result, that is going to be lifting our performance in 2025, which we have shared in our updated guidance, but without necessarily that carrying over into 2026, because it really has just delayed the timing of these impacts and how they will lower our gross profit.

Unidentified speaker: Got it. Okay. I just want to level set on kind of your vision for Marqeta’s longer-term growth and ambitions. I guess, how do you frame the longer-term opportunity? What are the two or three things that you expect to make the most impact over the next kind of 12 to 18 months?

Mike Milotich, CEO, Marqeta: Yeah, I would say the growth path for our business is very clear. In my mind, there’s sort of two ways that we look at it internally. One is just from a pure kind of market outside-in perspective, if you will, where first we’ve had a lot of success with our fintech customers over the years. They continue to expand both in their products and services they offer, but also geographically. We want to keep doing that. We’ve started to serve the embedded finance use case. That is a business that’s still relatively new on the issuing side. A lot has happened on the merchant side, but on the issuing side of the business, it’s early days. That’s sort of the next wave of growth for us. Ultimately, we want to serve the big banks. That’s several years away.

Another way that we look at the growth is more from an inside-out perspective where we’ve built all of our success has come for the most part in debit and prepaid. We’re starting to build a credit business. Credit is half the market here in the U.S. It’s a large portion of the market outside the U.S., and that’s a big growth area for us. The second area is geographic expansion. Our Europe business has been growing really quickly, TPV over 100%. We recently did an acquisition to enhance our offering in Europe. That business is still relatively small. We think there’s a lot of geographic expansion to be done. The last area is in more value-added services. Traditionally, our business and our growth was very tied to TPV because our program management was really done as a bundle. We didn’t have a lot of additional services surrounding it.

Over the last couple of years, we’ve really built a lot of capabilities. Whether it’s risk or data services, banking and money movement capabilities, tokenization, all these things are now drivers of growth. If I was to focus on just sort of the next 12 to 18 months, I would say Europe and value-added services, bigger drivers of growth. The value-added services are still relatively small, but from a growth perspective, they can contribute and they tend to be higher margin as well. They help the profitability. Credit, I would say, is probably more of a medium-term opportunity for it to really meaningfully impact the P&L.

Unidentified speaker: You’ve been talking more about the value-added services opportunity. Can you give us a sense for, can you frame it in terms of an attach rate opportunity or like an ARPU opportunity with some of your existing clients and what that looks like when you successfully cross-sell?

Mike Milotich, CEO, Marqeta: Yeah, I think that in some cases, like we’ve said, our risk services, for example, are getting a lot of adoption. We have over 40 customers that use them. I also think that the fintechs prided themselves on saying, "This is my core business. So, I’m going to combine best-of-breed services to create a really unique offering." They weren’t necessarily as interested in buying a whole array of services from you because they were going to piece it together and maybe build some components themselves. I think as we move more into embedded finance, that changes a lot. The customers are not payment experts. It’s actually quite the opposite. They want more of a full package that they want to get from one provider.

I think a lot of what we’ve been gearing up towards is, sure, we will cross-sell to our existing customer base, and we have done so with some success. We think the attach rate will be higher in the future as our customer base diversifies.

Unidentified speaker: Got it. That makes sense. Maybe staying on the topic of longer-term growth, you know, how do you think about the growth algorithm for gross profit growth in the business, and what level of growth rate do you think is a sustainable run rate over time?

Mike Milotich, CEO, Marqeta: I think our gross profit growth is impacted by many factors. The last couple of years with renewal activity and having to reprice some things, it’s been a little bit choppy. Also, what’s happening is as our business matures, we’re getting to a lot more economies of scale and we’re starting to really drive a lot of EBITDA. What’s challenging, I referenced it a little bit earlier, is that because of the complexity of our business, it’s also a very long-cycle business. When we make investments, it takes some time for the payoff to show up. The way we’ve actually been anchoring the business internally is really looking at a rule of 40-like metric where we’re looking at gross profit growth combined with our EBITDA as a percentage of gross profit, which we feel like is the best way to really assess the profitability of our business.

We’re starting to inch up pretty quickly towards a rule of 40 metric. We think that metric captures the balancing act we’re doing of driving growth, but also having to manage investment that really won’t be a factor in our growth for a couple of years. Once we pass that 40% threshold, we’ll keep raising the bar.

Unidentified speaker: You mentioned renewals on that. One thing that stuck out over the last year or so was changes in the contracts, kind of lessons learned after the Block renewal to make sure that there are enough incentive tiers, the structures are accommodative of high-growth customers so that when these long-dated contracts come up for renewal, you don’t experience this cliff activity. Is the implication that the renewal impacts in any given year will be just a lot lower after you get through these last couple?

Mike Milotich, CEO, Marqeta: That’s right. We’ve been pretty progressively resetting our contract base and setting it up. Our goal has been that renewals become non-events in the future. We have these last couple to get done, but we expect a lot of that noise to be gone from the business. There’ll still be renewal activity and customers want better pricing as they get bigger, but it won’t be as significant as what we’ve experienced up till now.

Unidentified speaker: Makes sense. I guess on the Block relationship, the concentration with Block has continued to decrease over time. This quarter was relatively flat. It’s a very strong partner, growing well. Just how do you think about changes to that relationship or the longer-term view of the relationship’s significance to the company?

Mike Milotich, CEO, Marqeta: Yeah, I think one of the big misconceptions about our business is that as our customers get bigger, they want less from us. In some cases, customers have taken on some responsibility, but I would say that’s pretty limited. We have many, many examples where our bigger customers want us to deliver more. As I mentioned earlier, we have really expanded the services that we offer from risk services, data services, tokenization, banking, money movement. Now we’re building an app for our customers to utilize. We have just a lot more to offer. At the same time, traditionally, our program management was also sold as a bundle. What we’ve been working hard over the last couple of years to do is break that apart into more of an a la carte menu and allow our customers to pick and choose.

As this sort of portfolio or this menu of capabilities and services expands, we are increasingly selling some of these capabilities to our customers and in many cases, our largest customers, which would include Block. When we sell these services, we can get incremental revenue and gross profit without a change in our TPV trajectory. That’s really what you’re seeing as the concentration slowed this quarter. That’s something we think will be a little more common because, again, a few years ago, all of our growth was really driven by TPV.

Unidentified speaker: Yep.

Mike Milotich, CEO, Marqeta: The second part of your question in terms of how we think about the long-term relationship, we’re very important parts of each other’s businesses. We’re talking multiple times a week. We’re really in regular contact with one another and really have a very tight relationship. We believe there’s still many opportunities to drive growth for them on our platform between our broadening capabilities that I’ve been talking about, our geographic reach, and our expertise. We still think there’s a lot of ways we can help Block grow and we can drive growth for us. At the same time, we also understand that our large customers also want to diversify providers. Several of our large customers have done that. That’s a very standard risk management approach in the business, and not just in the payments business, but in other businesses.

In payments, often what you see is, and some of our customers have done this, they may diversify, but you tend to have a primary provider that you keep the bulk of your volume with in order to maximize your economics. For risk purposes, you do have a backup provider. I’m sure many of you saw the Bancorp 8-K a couple of months ago where they talked about establishing a relationship with Cash App. At this time, that’s not something that we’re participating in. In terms of diversifying like bank and processors, we recently added another bank on our platform for Cash App so that they can diversify bank partners within our stack. They have had backup processors before. This is nothing new, but this is not at least something for now that we’re participating in.

Our understanding is in order to diversify, they are going to start to do some new issuance at Bancorp, starting in 2026. Whether that’s a portion of new issuance or all new issuance, only time will tell. The way that we’ve looked at it is even if starting on January 1, all their new issuance were to move to Bancorp, the impact on our 2026 gross profit would be in the sort of high single-digit millions of dollars. It would lower our 2026 growth by about 2%. As we think about our business, that’s factored into our thinking.

In our last earnings call, we talked a lot about that, as our business is changing, our views of our 2026 gross profit dollars in terms of what we thought at the beginning of 2025 and our views at the time of our earnings call was that the dollars of 2026 hadn’t really changed a whole lot. Even as things were changing in 2025, and as we incorporate all this information, that’s all factored in. We still believe that our views of what our P&L will look like in 2026 from a gross profit perspective is pretty consistent in dollar terms to what we thought at the beginning of the year. We still believe that we can achieve GAAP break even. That’s something that we’re constantly refining our assumptions. That’s our interim view at this time.

I would say that the one more important thing is that our relationship is quite strong and we continue to work on new capabilities together. It’s a really constant ongoing effort for us to figure out ways to help them drive value and growth for their user base.

Unidentified speaker: Yeah, no, that makes total sense. I guess under the contract, the new construct, to the best of your understanding, is there a target mix of kind of processing at you and the new relationship at Block that you think that over time the overall business will trend towards?

Mike Milotich, CEO, Marqeta: We don’t know. This is not new for us, and we feel like we add a lot of value and have a lot of unique capabilities with them. We’ll see how it goes. Our view is that not standard risk management and not very impactful to our P&L, at least in 2026.

Unidentified speaker: Makes sense. Okay. Let’s talk a little bit about the regulatory environment. Last year, you called out certain regulatory changes that were making go-lives more difficult, extending the timelines. You’ve also talked about adding new banks. You just mentioned adding new banks to add diversity to the platform and the prior conversation about Block. Can you update us on the progress on additional banks and just the overall regulatory environment in general?

Mike Milotich, CEO, Marqeta: Yeah. In the past, we wanted a number of banks to have enough options for customers. At the same time, we want to maximize our economics for the benefit of our customers by getting scale with each bank. There is sort of this balancing act we’re doing between having a number of providers, but also not spreading the volume out too thin. As the regulatory environment changed and some of the services and use cases we’re targeting evolved, not every bank wants to do every type of use case and service, particularly as we talk about credit, which is even more specialized. We determined last year that we wanted to bring on two additional bank partners. For one of them, the technical integration is almost complete. We’re right on the verge of completion, and we already have a customer that we expect to go live in 2025.

That one is almost at the finish line. The second bank, we just recently signed the contract, and the technical integration work has started so that we can support programs for customers in 2026.

Unidentified speaker: Very good. Okay, just the overall regulatory environment?

Mike Milotich, CEO, Marqeta: I would say not a lot has changed. You read a lot about what’s going on, but I would say that hasn’t necessarily trickled down to the banks. Everyone is still operating sort of as usual. The important thing to mention there, though, is that the bar, if you will, changed almost two years ago now. We are in a better rhythm and everyone has adjusted to that. It was pretty disruptive 12, 18 months ago, but now everyone’s adjusted to that new level and things are working more efficiently.

Unidentified speaker: Got it. Okay. This past quarter, I think one of the highlights was the outperformance across the lending and Buy Now Pay Later space. I guess, could you maybe just level set us how large that vertical is today in terms of, you know, volume or gross profit or both? I was hoping you could talk about kind of where you see the BNPL industry headed over time, given that you work with most of the major players in that space.

Mike Milotich, CEO, Marqeta: Yeah. It’s a big, fast-growing use case for us. I would say the last several quarters, lending and Buy Now Pay Later (BNPL) has been sort of mid-teens % of our TPV. Typically, Q4, because of seasonality, is much higher. As we were highlighting, the business is growing much faster. Even in Q2 that we just had this year, it was actually slightly bigger from a % of TPV than Q4 was. It is in the mid-teens and it’s growing very quickly. The growth is coming from a few different areas. It’s really the broadening of the use of Buy Now Pay Later capabilities. Particularly, it’s not as focused on sort of bigger purchases, like either very large purchases or something very small. It’s really starting to be utilized more as a cash flow management tool. The diversity and the types of purchases that are being made is increasing.

It also is just a much broader customer base. You see a lot more adoption. It also used to be in more specific geographies. It’s really becoming more broad-based and you’re starting to see it in a lot more markets, which is part of what’s fueling our growth. I think the biggest change, though, is that more and more of the BNPL providers are offering what we call a pay anywhere card, which is really our name for them offering their customers a card that says you can use this card anywhere that cards are accepted and you can be allowed to Buy Now Pay Later with all those purchases. It becomes a feature of the card itself. What that does is drive a lot more engagement.

If you look at, we do a lot of consumer surveys and things, and what they’re saying is that I don’t want to have multiple cards, multiple wallets. This allows a consumer to have the ability to sort of pay now or pay later in one product. That’s being also helped by the introduction of flexible credentials from the network, which we were the first processor in the U.S. to deploy. I would say we see a big shift in the sort of adoption of that capability, as well as in general, just the use of Buy Now Pay Later spreading to many more merchant categories and geographies. Given the way the flexibility and the reach of our platform, that’s what’s really benefiting us from a growth perspective.

Unidentified speaker: Should we be thinking about the growth in some of these, you know, the physical card issuance and the expansion of the Buy Now Pay Later (BNPL) networks as the bigger driver of BNPL growth for Marqeta over time, or will the kind of virtual cards and the plumbing of the transactions, even in the online world, continue to be a big part of the story?

Mike Milotich, CEO, Marqeta: I still think that’ll be a big part of the story. If you think about the tens and tens of millions of card holders that are out there and hold cards, I’m sure our Buy Now Pay Later (BNPL) customers would love to say that all those people will have one of their cards. Even if they are wildly successful and drive a lot of growth, there’ll still be many, many customers who won’t have one of those cards and will more opt to click on their mark in the checkout process.

Unidentified speaker: Makes sense. I wanted to switch gears and talk a little bit about international expansion and the TransactPay acquisition. You’ve been talking about the pipeline in international deals for a while now. I was wondering if you could talk about what you’re seeing on the ground in Europe compared to what we see in the U.S. today, and then maybe also hit on the TransactPay acquisition.

Mike Milotich, CEO, Marqeta: Sure. Our Europe business has really been performing well. The TPV growth has been over 100% for many quarters. What’s interesting about it, at least from my perspective, is that all our major use cases are growing over 100%. It’s not a particular part of the business, but financial services, lending, Buy Now Pay Later (BNPL), expense management are all growing over 100%. There’s just a lot of opportunity there. I think the biggest difference in Europe from our perspective is that they’re a little bit ahead of the U.S. from an embedded finance perspective. Because of the way the economics work in card in Europe, they are much further along in thinking about how to use financial services and card products in particular to drive engagement in their core business, which is really sort of the core tenet of the embedded finance use case.

I would say they’re a little bit further along. Because of that, that’s really what got us to act on the TransactPay acquisition. What happened before, our service in Europe was somewhat limited where we could offer processing. Because of the way the licensing works in Europe, you have providers who have this EMI license, which allows you to be the member of the network and own the bins. That needed to be part of your solution together with the bank. What a lot of large enterprise customers, which is most of the embedded finance market, were saying is, I really want one provider who provides me processing, program management, and the license. If you don’t have all three, then I’m going to have to sign multiple contracts and I’m not very interested. That’s really what drove the need for us to make that acquisition.

We could have gone through the licensing process ourselves, but it would have taken a lot of time. There’s a lot of expertise involved. We got both a huge acceleration in the timeline as well as a lot of very capable people who know how to manage in that environment. Not only will this open up deals that we really just weren’t going to have access to, particularly on the high end of the market, the very larger deals, the bigger deals, but it also makes our service much more similar between North America and Europe. Why we think that’s important is because the fintechs are becoming big businesses and expanding geographically. Embedded finance, almost all those companies are already multinational. We wanted it to be very easy for a European customer to move to expand into the U.S.

and have the service we provide be very similar, and vice versa. U.S. customers expanded to Europe and are able to offer a very similar service, which we weren’t able to do before. With the addition of TransactPay, we’re able to do that going forward.

Unidentified speaker: All right. I’m going to try to squeeze in a couple more topics here. On the spend management side, it’s been another really high-growth area of the business. You partner with several of the kind of high-profile, high-growth players in the space, like Bill and Ramp. How large is the vertical today? Just how do you think about the growth rate of the category over time?

Mike Milotich, CEO, Marqeta: Yeah. It’s another big component of our business. The expense management, it’s a little smaller than Buy Now Pay Later (BNPL). It’s in the, I guess it’s in the teens % of our TPV, but it’s a little smaller than the lending and Buy Now Pay Later use cases. The growth is really being driven by newer companies who are really utilizing modern technology, both that they build themselves as well as using modern processing technology that we provide to really offer a service that goes well beyond what the traditional players offer. The growth has been, this past quarter, our TPV growth in this area was over 30%, which has been pretty steady over the last several quarters. It’s really those businesses are winning share.

They just offer a much more compelling value proposition than the traditional players, just in terms of its flexibility and the level of control that they offer and how seamless it can be sort of embedded into the rest of your business. They are having a lot of strong user acquisition, and that’s helping drive the growth. We are the beneficiary. I would say we’re also enabling geographic expansion. That’s another area. Again, I would say the consistent theme in our business is now that the fintech winners have been crowned, they are moving into new products and new geographies to continue to grow their business.

Unidentified speaker: Got it. Makes sense. Okay. This summer was kind of dubbed the Stablecoin Summer. There’s been a bunch of announcements from various players in the payments ecosystem. You know, with summer ending, are we now in the fall of Stablecoin? Is it over? Are we still going to be talking about it?

Mike Milotich, CEO, Marqeta: I’m sure we’ll still be talking about it. Our view is that the two primary benefits of stablecoin are you’re either living in a country that has very high inflation and you’re looking to protect yourself from that, or it’s more of a cross-border use case where you’re looking for speed of that moving, the costs are fairly high. Those being the two primary sources of value, neither of those are really a big part of our business today. We don’t see this as super disruptive to our business, at least for now. I think what remains to be seen is if the stablecoin sort of wallets take off. What I think is still unclear is, where are you really going to be, how often are you really going to be able to use that wallet to make purchases?

If that’s not the case, then also what is the cost to get the value out of that wallet into something that then is more usable? I think until there’s clarity on that kind of adoption and usage, it is a little bit hard to project. In our view, we already have a solution that works best for this market, which we already do with Coinbase and Bitpanda and crypto, and which obviously would apply in stablecoin where they offer their customers a card where you can transact in fiat in the ecosystem. The rest of the ecosystem doesn’t have to change or could evolve slowly over time, which is typically the case.

Unidentified speaker: Yep.

Mike Milotich, CEO, Marqeta: They’re just drawing down on your balance of crypto or stablecoin. We feel like we have a solution that very much works if the usage of these wallets takes off, even if acceptance isn’t there. At the same time, we are engaged with several people about partnerships because that might be the case for the next several years, but thinking out further, we want to make sure we’re positioned to support our customers if they want to go down that path.

Unidentified speaker: Got it. Okay. I wanted to talk a little bit about conversations with large FIs. I know this is something you’ve always been focused on as a longer-term opportunity, but something you do want to address. Maybe you could talk to John what the conversations with large FIs look like today and any updated thoughts around timelines.

Mike Milotich, CEO, Marqeta: Yeah, I mean, they’re ongoing. We’re in dialogue with them. I wouldn’t say constantly, but from time to time with different FIs, we’re in conversations. They’re thoughtful organizations. They also plan way ahead. Even if something were to happen tomorrow, it would probably be a few years before the volume would come on in a meaningful way. I think for most banks, there’s some investment in their infrastructure that has to be modernized in order to really take advantage of the kind of capabilities that we would offer. We still think it’s several years away. For us, the focus is to sort of get our foot in the door with a very specific use case where we have a lot of expertise and are highly differentiated.

The other area where we think we’re likely to get in earlier is in the commercial side of the business because of the success of the players we talked about earlier. For them to respond, they’re going to have to upgrade their capabilities. We’re just trying to get kind of our foot in the door, start building those relationships. We don’t expect the business to be significant in the next three to five years. As we look out further, that’s definitely the part of the market we want to target.

Unidentified speaker: Got it. Mike, I think we’re just about out of time here, but thanks for being here today. Congratulations on the appointment.

Mike Milotich, CEO, Marqeta: Thank you.

Unidentified speaker: I really appreciate you attending the conference.

Mike Milotich, CEO, Marqeta: Yeah, no, thank you so much for having me.

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