Digital payment processing company Marqeta Inc. today finally closed on $260 million fundin round almost two months after it first said talks were taking place.

Coatue Management led the Series E round, which also saw the participation of several new investors, including Spark Capital, Lone Pine, Geodesic and Vitruvian. Marqeta said the round pushes its valuation to almost $2 billion — not bad for a company that few have heard of.

One of the reasons Marqeta has gone under the radar up until now is it operates in a very specific niche within the financial services industry. It competes against traditional banks by providing payment cards to brands that want to offer them to their customers. Some of its biggest clients include fintech startups such as Square Inc. and Kabbage Inc.

In recent months, Oakland-based Marqeta has expanded its operations into Europe to compete with startups such as N26 Bank GmbH and Revolut Ltd., which are themselves challenging traditional banks.

Marqeta sees Europe as a key growth market, as it already accounts for 14% of its $238 billion annual revenue. In contrast, Marqeta and other challenger startups account for just 3.5% of U.S. banking industry revenues.

Marqeta’s expansion into Europe is one explanation for why it could attract such huge funding. Other reasons might be its focus on offering new services to complement its digital payment platform, such as virtual credit cards, real-time fund transfers and voice services.

In any case, the money is in the bag and Marqeta said the bulk of the funds will be used to accelerate expansion plans in the U.S. and abroad.

“We are in the midst of a transformation in card issuing around the globe,” said Jason Gardner, Marqeta’s founder and chief executive officer. “When today’s innovators are in need of modern payment solutions, they aren’t turning to banks as their primary issuers anymore, they want a platform built for their needs.”

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