What are some of the key factors that prompt customers to switch from BaaS to Lithic or Marqeta, such as unique features or scale limitations?

I think a lot of times the distinction that we’ll see is folks that don’t have a lot of know-how in the financial services space and want to launch something really quickly -- just get the card in people’s hands. They don’t really care about some of the modularity that we provide. It’s all about time to market over pretty much everything else.

The break points we see are when you’re scaling, and you’re like, “Hey, I want to launch a new product offering.” For example, maybe it’s working with a customer that launches a debit product but is now rolling out a charge card offering. That’s something where we’re like, “Hey, we’re pretty agnostic about the ledger, so you can bring your own credit core, and we’ll still process transactions. We’ll do all the same things that we did for the debit product.” Oftentimes the break points are when people want to launch new products, when they want to fine tune their AML/KYC process.

A fundamental thing is when they want to talk with the bank. As you get bigger and bigger, you start to want to have a relationship and a dialogue with the sponsor bank, at least in my experience. And the sponsor bank oftentimes wants that dialogue with their biggest customers, too, to know, “Who are we sponsoring here?”

The other piece we’ve seen is, “Hey, I’ve got some customer requirements around physical cards” or “I want to build some more bespoke product offering.”

What we’ve found is, inevitably, as fintechs and neobanks scale, almost everyone ends up wanting to make a move at some point. Then it becomes a question of which offering do you want to go with, or what’s the construct?