Today In Payments: Poshmark More Than Doubles Valuation In Nasdaq Debut; Goldman Taps Marqeta To Power Marcus Digital Checking
In today’s top news, Poshmark has more than doubled its valuation after its IPO on Thursday, and Goldman Sachs is teaming with Marqeta to power digital checking accounts for Marcus. Plus, President-elect Joe Biden released a $1.9 trillion COVID-19 relief package.
Poshmark saw its valuation more than double following its Nasdaq debut, with shares closing at $101.50, compared to the pricing at $42. The digital reCommerce marketplace, which is now valued at over $3 billion, describes itself as a social platform. Poshmark doesn’t buy inventory; instead, it collects a fee on anything people post for sale on the platform.
Card-issuing platform Marqeta has been tapped by Goldman Sachs to power digital checking accounts for Marcus. The addition of digital checking expands the Marcus consumer portfolio of digital-first banking initiatives, which include high-yield savings, certificates of deposit, personal loans and other services.
President-elect Joe Biden will push for a $1.9 trillion COVID-19 relief package, including an additional $1,400 stimulus checks, $400-per-week unemployment benefits, expanded paid leave and an increase in the child tax credit.
U.S. Federal Reserve Chair Jerome Powell said he isn’t in a rush to adopt a central bank digital currency (CBDC) because of the risks such currencies pose to the status of the dollar. According to Powell, the Fed is “investing heavily” in the technology and is looking into the policy questions posed by CBDCs, but it would likely be years rather than months before the Fed had any sort of CBDC ready.
Despite sky-high demand for contactless payment options, many U.S. consumers are unfamiliar with QR code-based payments and may not be comfortable using them. Tony Leon, chief technology officer of sporting goods retailer Decathlon, explains how using dynamically generated QR codes and keeping the payment experience simple can bolster security and make payments convenient even for first-time users.
A number of trends are converging to bring stablecoins into the commercial and consumer payments mainstream. As Circle CEO Jeremy Allaire told PYMNTS’ Karen Webster, the road is gaining clarity – but it’s not quite ready for rush-hour traffic.
Not as bad as it looked earlier in the year, perhaps – but we’re not out of the woods yet. J.P. Morgan’s latest earnings got a boost from releasing reserves meant to cover anticipated loan losses, but held those reserves flat for consumer segments. Here are the puts and takes – and the numbers, of course.