What is Highnote's approach to interchange economics and how will it change with increasing transaction volume and time?

As you probably are aware, Marqeta has two different models. They have a processor-only model where all Marqeta is providing is the processor technology. 

They also have the Managed by Marqeta model, where they do the actual soup to nuts program management, where the interchange split tends to be much lower for the customer and much higher for Marqeta. 

Highnote is bringing a very differentiated approach to the market because what we saw in the industry is one of two models. 

With many of the providers, what you'll see is you get a hundred line items, everything from transaction fees to monthly account fees and fixed costs and API calls.

On the other end, you have the newer models, which take a split of the revenue share and they also ask you to pay a SaaS fee, and then they ask you to pay ridiculous amounts of implementation fees and so on. 

We are taking a very different approach. We feel that customers launch card issuance to drive their business forward. We want to create a model which aligns our incentives fully with the customer's incentive. 

We've created a very simple model, which is purely based on revenue sharing on the interchange piece. Again, it is very customized depending on the customer's actual card program. We spend a significant amount of time just understanding the customer's needs and customizing the revenue share agreement in a way that gets them aligned with the incentive of making their program successful. Then as they scale, they get more than a majority share of the revenue equation.