Fiserv Applies for Special-Purpose Merchant Acquirer Bank Charter in Georgia

Fiserv, one of the largest payments technology providers, filed an application for a merchant acquirer limited purpose bank (MALPB) charter in the state of Georgia around early January 2024. The special-purpose charter would enable Fiserv to act as a direct merchant acquirer for card transactions processed through Visa and Mastercard networks, reducing its dependency on partner bank relationships for payment processing. This move represents a strategic vertical integration play that could reshape the competitive dynamics between payments processors and traditional acquiring banks.

The MALPB charter is a relatively new charter type in Georgia designed for entities focused on merchant acquiring. Approval was anticipated during the first half of 2024, pending regulatory review. If granted, the charter would give Fiserv greater control over its payments infrastructure and potentially lower transaction costs.

The application attracted industry attention for its implications on the bank-fintech partnership model in payments processing.