Fiserv and Stripe are seeking special banking charters (MALPB) to process transactions directly, reducing reliance on traditional banks. This move could lower costs and increase control over payment processing, potentially reshaping the fintech and banking landscape.
In a bold move that could redefine the payments industry, Fiserv and Stripe are pursuing special banking charters known as Master Account and Limited Purpose Bank (MALPB) charters. This strategic shift aims to allow these payment giants to bypass traditional banks and interact directly with payment networks like Visa and Mastercard. According to a recent announcement by Fiserv, this approach could significantly reduce transaction costs and streamline operations. Meanwhile, Stripe’s CEO Patrick Collison hinted at this direction during a fintech conference last month, emphasizing the need for more agile financial infrastructure.
The push for special banking charters
Financial technology giants Fiserv and Stripe have quietly been working on obtaining special banking charters that would allow them to process payments directly through Federal Reserve systems. This development, first reported by American Banker in January 2025, represents a significant shift in how payment processors interact with the banking system.
According to regulatory filings reviewed by Reuters, Fiserv applied for a Master Account and Limited Purpose Bank (MALPB) charter in late 2024. Stripe followed with a similar application in early 2025. These charters would grant them direct access to payment networks without needing intermediary banks.
Industry reactions and implications
“This is potentially the most significant development in payment processing since the creation of Visa and Mastercard,” said Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group. “By cutting out the middlemen, these companies could reduce transaction costs by 15-20%.”
However, traditional banks have expressed concerns. The American Bankers Association released a statement warning that such moves could “undermine the stability of the banking system” and create “unlevel playing fields.”
What this means for consumers and businesses
If approved, these charters could lead to faster settlement times and potentially lower fees for merchants. A Stripe spokesperson told TechCrunch that their goal is to “create a more efficient payment ecosystem that benefits all participants.”
Fiserv’s CEO Frank Bisignano emphasized in a recent earnings call that this initiative is about “modernizing infrastructure” rather than replacing banks. The company plans to continue working with bank partners even if the charter is approved.
Regulatory approval is still pending, with the Federal Reserve expected to make decisions on these applications by Q3 2025. The outcome could set a precedent for other payment processors considering similar moves.
