Fiserv Becomes First MALPB to Process Card Transactions in the U.S.
Fiserv received approval for its Merchant Acquirer Limited Purpose Bank (MALPB) charter from the Georgia Department of Banking and Finance on September 27, 2024, following a rigorous review of its business plans, capital, governance, and compliance frameworks. A permit to begin business was issued on April 11, 2025, and Fiserv processed its first transactions around April 30, 2025. The MALPB charter is limited to merchant acquiring and does not permit deposit-taking, positioning Fiserv to process card-based payments directly through Visa and Mastercard networks without relying on a traditional sponsor bank.
This marks the first time an MALPB charter has been used to process card-based payments in the United States. The move is significant for the BaaS and embedded finance landscape, as it demonstrates a new pathway for payments companies to gain direct network access via state-level limited-purpose banking charters. Georgia's MALPB framework is attracting other fintechs, including Stripe, which has also applied for a similar charter.
- State-level limited-purpose bank charters offer fintechs and payments companies a viable alternative to full bank charters or sponsor bank reliance for direct card network access.
- Georgia's MALPB framework could attract more payments firms seeking to vertically integrate acquiring, intensifying competition with traditional sponsor banks in the BaaS ecosystem.