Stripe Applies for Georgia MALPB Charter to Bypass Sponsor Banks
Stripe filed an application for a Merchant Acquirer Limited Purpose Bank (MALPB) charter with the Georgia Department of Banking and Finance, which was accepted in early 2025. The MALPB charter, if approved, would enable Stripe to directly access Visa and Mastercard card networks for merchant acquiring without relying on a traditional sponsor bank. As of April 2025, the application had not yet been approved and remains under regulatory review.
The move follows Fiserv's successful use of the same Georgia charter framework and signals growing fintech interest in state-level limited-purpose banking licenses as a practical alternative to federal charters. Stripe's pursuit of direct network access could reshape its cost structure and competitive positioning in payments and embedded finance. The application process involves assessment of business plans, capital adequacy, management expertise, and compliance frameworks, and timelines for approval can extend over months.
- If approved, Stripe's MALPB charter would reduce its reliance on sponsor banks, potentially lowering interchange costs and increasing control over its payments stack.
- Multiple major fintechs pursuing MALPB charters signals a structural shift that could disintermediate traditional BaaS sponsor banks in the acquiring value chain.