Stripe Applies for US Banking License to Expand Merchant Acquiring Capabilities

Stripe’s application for a Merchant Acquirer Limited Purpose Bank (MALPB) charter has been accepted by the state of Georgia’s Department of Banking and Finance, bringing the financial infrastructure giant one step closer to directly accessing payment card networks.

In a PYMNTS exclusive, Stripe detailed that the MALPB charter will allow the firm to broaden its payment processing offerings — in this case, to obtain direct membership in the U.S. with Visa and Mastercard and to process payments without a sponsoring bank (known as a BIN sponsor).

Stripe’s membership with the card networks is a complement to existing processing and settlement activities and will not lead to a replacement of existing banking relationships or acquiring BIN sponsorships — nor is the MALPB a signal that Stripe is expanding into additional, traditional banking activities.

The scope of the charter is limited to merchant acquiring and does not include deposit taking or similar banking activities; the charter/application itself, as detailed here, mandates payment volume capital and various capital requirements that are based in part on traditional banking standards and also “capital standards and those applicable to similar entities currently operating as merchant acquirer members of card networks in the European Union (EU) under the framework established in the Payment Services Directive (PSD).”

There’s some prologue here for membership in the United States, as the platform already is a direct member in nine markets around the globe, including in the United Kingdom.

A Stripe spokesperson told PYMNTS that “over the past few years, as Stripe’s business has grown, we’ve significantly expanded the number of banking and other partners we work with,” adding that the Georgia MALPB is a “step follows in this strategic direction.”

Direct Relationships and Bypassing Processors’ BIN Sponsors

In terms of the mechanics of the membership, acquirers that are member networks directly process and settle transactions with Visa and Mastercard, and bypass BIN sponsors — where the result can be faster payouts and lower transaction fees for the acquirer while cementing merchant loyalty to acquirers as costs are reduced for both the acquirer and the merchant.

The direct relationships with the payment networks simplify the steps tied to debit/credit card transactions, and the intermediary relationships, where payment processors send transactions to the networks, the transactions are routed through BIN sponsors, and approvals are sent back through the processor before funds are released.

The Stripe news comes after Fiserv had received approval from Georgia’s DBF in the Fall of 2024.  At that time, and as PYMNTS reported here, CFO Robert Hau noted on an earnings call, “This is a special purpose charter that enables optionality for sponsorship for merchant acquiring. It’s important to clarify that Fiserv is not becoming a bank. Fiserv will not open branches, take deposits or write loans as traditional banks do.”

Only one other firm has received the charter since its 2012 launch, Credorax, an Israeli firm later known as Finaro before being acquired by Shift4.