In a significant development since our last post, Fiserv’s application for a merchant acquirer limited purpose bank (MALPB) charter has been approved by the Georgia Department of Banking and Finance. This approval marks a pivotal moment for fintech and nonbank entities seeking direct access to card networks.
As we discussed in our previous post, Fiserv’s application for the MALPB charter was a seismic development for those pushing for more direct merchant acquirer access to the payment card networks. The approval of this charter now allows Fiserv to offer merchant payment processing services without the need for a sponsoring partner bank. Specifically, Fiserv can now:
- Obtain membership in card networks;
- Sign up and underwrite merchants to accept network-branded cards;
- Facilitate the clearing and settlement of transactions through a card network; and
- Provide access to, and sponsor participation in, card networks to the MALPB’s affiliates, customers, or customers of affiliates.
This development is a positive sign for the industry, indicating that card networks may be more open to working with nonbank or fintech acquirers possessing this special purpose charter.
