Payments processor Marqeta pops 19% in trading debut after raising $1.23 billion in an upsized IPO

• Marqeta stock jumped as much as 19% in its trading debut on Wednesday.
• The surge came after the company raised $1.23 billion in an upsized IPO on Tuesday.
• Marqeta trades in the Nasdaq Global Select Market under the ticket "MQ."

The payments processor Marqeta saw its stock jump as much as 19% on its Wednesday trading debut after raising $1.23 billion in an upsized IPO.

The company sold 45.5 million shares for $27 apiece on Tuesday after marketing shares for between $20 and $24 each.

Marqeta was founded in 2009 by its current CEO Jason Gardener and now has operations in 36 countries employing over 500 people. The company trades on the Nasdaq Global Select Market under the symbol "MQ."

Oakland, California-based Marqeta provides physical and virtual debit, credit, and prepaid cards to clients like Uber, DoorDash, Instacart, and even financial institutions like Goldman Sachs.

Marqeta's largest customer is the payments processor Square, which accounted for some 70% of its net revenues in 2020.

In the first quarter, Marqeta saw its revenues jump 123% year-over-year to hit $108 million. The company has issued over 270 million cards through its platform and ranked 7th on CNBC's 2021 disruptor list.

CEO Jason Gardener told CNBC after the public debut on Wednesday that the company sees "lots of opportunity around the world" for potential consolidation.

"Our plan is to grow organically and grow inorganically where we see it being strategic and opportunistic," Gardener said, hinting at the possibility of future acquisitions.

The CEO went on to explain how his company is a part of a growing trend to digitize payments, noting that Marqeta's products help clients avoid fraud and enable consumers to "buy now and pay later" at their favorite retailers.

Marqeta derives its revenues from interchange fees which are charged to merchants every time a consumer swipes their card. Some market pundits have warned that any change in US regulations on interchange fees could hurt Marqeta's business.

CNBC's Andrew Ross Sorkin asked Marqeta's CEO about the possibility of these interchange fees being compressed in the future. The CEO said there is nothing he sees "on the horizon" that would compress interchange margins.

To learn more about Marqeta, check out Insider's deep dive on four key details about the global payments processor.

Marqeta stock traded up 12.97% as of 2:03 p.m. ET on Wednesday.