The world of fintech startups is a cutthroat one, without a doubt. But as disruptive tech investment leaders Marqeta and Plaid have discovered, sometimes a lot more can be accomplished by joining forces than by competing with one another.
In a first-of-its-kind partnership between the two firms, each renowned in its own right for accelerating fintech startups like Square and Uber, Marqeta and Plaid have teamed up to support one another’s products. The alliance represents a massive opportunity for the companies’ best-in-class fintech clients, which will now be able to quickly and easily authenticate accounts and transfer funds between their respective platforms.
Chief Operating Officer of Plaid, Eric Sager, described the synthesis of Marqeta’s and Plaid’s offerings as the solution to what was previously a headache for their customers. “In order to fund the wallet, which then funds a card, they have to go through a daylong or a weeklong micro-deposit flow,” Sager said. By comparison, the new integration of both companies’ products represents a “seamless flow.”
The new team-up has already reaped significant results for the partners: by the end of the day on which the agreement was announced, Plaid’s stock had risen by more than 8%.