Digital payments processor Checkout.com has filed an application for a special banking charter in Georgia, marking its next major step to accelerate US expansion and gain direct access to leading card networks like Visa and Mastercard. The company’s pursuit of this charter underscores its strategic motivation to strengthen its US market entry, enhance control over payments, and align with its growth plans as a fintech innovator serving enterprise merchants.
The application was accepted by Georgia’s Department of Banking and Finance, representing a key regulatory milestone for Checkout.com. Checkout.com’s potential chartering in Georgia could allow it to bypass traditional banking partners, facilitate faster product launches, reduce fees, and boost its innovation and competitiveness within the U.S. payments ecosystem.
If successful, Checkout.com’s own potential chartering could reshape its role in the growing American payments space.
Introduction to US Expansion
Checkout.com’s pursuit of a Georgia banking charter marks a pivotal step in its strategy to accelerate US growth and transform its role in the American payments landscape. By applying for a merchant acquirer limited purpose bank (MALPB) charter with the Georgia Department of Banking and Finance, the company aims to gain direct access to major payment networks, including the Visa and Mastercard networks, and reduce its dependence on traditional bank partners.
The main features of the Georgia MALPB charter include enabling payment processors to avoid traditional bank fees, improve competitiveness, reduce reliance on bank partnerships, and accelerate innovation in payment services. These advantages position Checkout.com to operate more efficiently and deliver enhanced value to its merchant clients.
The process of chartering, as seen in Checkout.com’s application, positions the company to provide seamless network access for its merchants, allowing the company to bypass banks’ fees and streamline the money movement flow. The Georgia banking authority’s MALPB charter is unique in the US, enabling payment processors to underwrite merchants, settle transactions, and authorize payments directly—without the need for integration with partner banks such as Cross River Bank or Pathward Financial. With this charter, Checkout.com can directly connect to US card networks, which not only enhances digital payments performance but also strengthens risk management from a banking and finance standpoint.
With the ability to drive integrations and deliver more control over payment services, Checkout.com is set to offer enterprise merchants—including digital giants like eBay, Pinterest, and GE Healthcare—greater efficiency and innovation in the merchant acquiring space. In the context of payment processing, checkout operations will be streamlined, giving merchants more direct and reliable access to payment networks. The company’s new office in Atlanta, a city recognized as a global fintech hub, underscores its commitment to the US market and its ambition to become a leading player in the region’s payments networks operated.
As Checkout.com’s charter application moves through the review process with the Georgia department, obtaining the charter is a banking charter demonstrating Checkout.com’s commitment to the US market and its intent to expand its presence. This initiative not only demonstrates Checkout.com’s dedication to driving innovation in digital payments but also signals a new era of competition and growth in the US merchant acquiring sector. From a risk management standpoint, the charter will allow Checkout.com to improve its risk mitigation capabilities by streamlining operations, reducing integration risks, and enhancing regulatory compliance.
Key Takeaways
- Checkout.com seeks Georgia’s unique merchant acquirer banking charter to streamline operations.
- Direct card network access will reduce reliance on external banks and speed up innovation.
- The US is poised to become Checkout.com’s largest market within a few years.
- Obtaining a Georgia banking charter is a multi-year journey, involving complex regulatory approval and ongoing partnerships before reaching full operational status.
Checkout.com’s Bid for a Banking Charter
Late last week, London headquartered fintech Checkout.com confirmed its application for a limited purpose bank charter, specifically a merchant acquirer limited purpose bank (MALPB) charter with Georgia’s Department of Banking and Finance. This strategic move would grant the London-based payments processor rare, direct access to the heart of the US payments network—a competitive edge already enjoyed by Milwaukee based Fiserv and Stripe, the only other recipients of this Georgia charter. By obtaining the limited purpose bank charter, Checkout.com aims to compete directly with behemoths Visa and Mastercard by gaining direct access to their networks, bypassing traditional banking intermediaries for faster and more efficient payments processing. Checkout.com is seeking a US bank charter to operate directly within payment networks and gain more control over payment processing activities. The company focuses on serving large digital merchants and driving innovation in the US market.
As part of its US expansion strategy, Checkout.com has seen its US transaction volumes grew significantly in recent years. The company focuses on serving large digital merchants and driving innovation in the US market.
The Regulatory Approval Process
The regulatory approval process for Checkout.com’s Georgia banking charter is a rigorous, multi-stage journey overseen by the Georgia Department of Banking and Finance. Once the digital payments processor submitted its application, the Georgia banking authority—represented by spokesperson Bo Fears—set a three-month window to review the request for a merchant acquirer limited purpose bank (MALPB) charter. This process is designed to ensure that Checkout.com meets the highest standards in banking and finance, with a particular focus on compliance, risk management, and operational soundness.
At the heart of the review is Checkout.com’s plan to gain direct access to major payment networks, including the Visa and Mastercard networks, and to provide network access to its merchant clients. The MALPB charter is unique to Georgia and is a cornerstone of the state’s reputation as a fintech hub, especially in the merchant acquiring space. By securing this charter, Checkout.com will be able to bypass banks for core payment services—such as underwriting merchants, authorizing and settling transactions, and managing the money movement flow—giving the company more control and flexibility over its digital payments performance.
Currently, Checkout.com relies on partner banks like Cross River Bank and Pathward Financial to connect to US card networks and facilitate payment services. The MALPB charter, however, will eliminate this integration point, allowing Checkout.com to operate as its own acquirer limited purpose bank. This shift not only streamlines operations and reduces costs but also enhances risk management by centralizing oversight and compliance within the company itself.
The Georgia Department of Banking and Finance will closely examine Checkout.com’s business model, financial stability, and ability to maintain safe and sound banking practices. The company must demonstrate that it can uphold the integrity of the financial system while driving innovation in digital payments. If approved, Checkout.com will join the ranks of Fiserv and Stripe as one of the few payments firms to hold a Georgia special purpose banking charter, further cementing the state’s leadership in payments networks operated for enterprise merchants.
For Checkout.com, the acceptance of its charter application is a pivotal milestone. The MALPB charter will empower the company to provide tailored payment services to large digital merchants, enhance its competitiveness, and accelerate the launch of new products. As explained by Jordan Reynolds, Checkout.com’s North America banking head, direct access to US card networks will enable the company to drive innovation and deliver a seamless experience for merchants. Ultimately, the charter positions Checkout.com to capitalize on the growing demand for digital payments and to establish itself as a dominant force in the US merchant acquiring market.
How the Charter Changes the Game
Securing the MALPB charter lets Checkout.com bypass traditional banks for underwriting, authorizing, and settling merchant transactions. Georgia plays a pivotal role in the payments industry, with roughly 70% of payments processed annually worldwide handled in Atlanta, and over 85 billion of the 135 billion global payments processed in Georgia in 2012. This not only reduces operational costs and helps avoid banks fees, but also provides greater control, speed, and flexibility in launching new products.
Checkout.com’s North American banking head, explained Jordan Reynolds, highlighted that direct network participation would eliminate the need for cumbersome integration with partner banks for core financial processes. The Georgia MALPB charter is a key enabler of these operational improvements, providing strategic access to the market and supporting Checkout.com’s growth ambitions. The charter removes the integration point with partner banks, and direct access to Mastercard networks eliminates the need for additional integration points, streamlining the transaction process. With this charter, Checkout.com expects to drive innovation and make product launches and payments innovation significantly faster and more efficient for its merchant clients—including large digital platforms like Etsy and Pinterest.
Industry Impact and Georgia’s Fintech Strength
Georgia’s MALPB charter is widely recognized as unique in the nation, contributing to Atlanta’s status as a global fintech hub. In fact, the state processes the majority of worldwide payments, with roughly 70% of annual global payment transactions handled in Atlanta. According to ATPC claims, this volume underscores Georgia’s dominance in global payment processing. The charter is also seen as a testament to Georgia’s leadership in merchant acquiring technologies and fintech regulation, and it reflects a new trend in payment processing and fintech innovation that is shaping the industry.
The Georgia banking charter has enabled large digital merchants, such as eBay and Pinterest, to process payments more efficiently, offering faster settlement and reduced costs for these enterprise clients. Compared to other region such as San Francisco, Georgia’s fintech ecosystem stands out for its regulatory advantages and payment processing capabilities.
Checkout.com’s ambition aligns with the company’s growing presence in the US, including a strategic office in San Francisco to strengthen its position in a key innovation hub. The MALPB CEO leads the US entity, bringing strategic vision and expertise to expand Checkout.com’s influence in the US payments market. Globally, the firm processes approximately $1 billion daily in e-commerce volumes across its 2,000 strong workforce.
Timeline and Future Plans
Dive insight: Checkout.com’s pursuit of a US charter reflects a strategic move to leverage regulatory innovation for long-term growth, with Georgia’s MALPB charter offering a unique pathway for fintech firms to operate as merchant acquirers and drive digital payments innovation.
The state has up to three months to review Checkout.com’s charter application. Bo Fears, a spokesperson for the Georgia banking authority, has emphasized the thoroughness and transparency of the review process for fintech applicants. Georgia’s MALPB charter is notable for enabling fintech companies like Checkout.com to bypass some traditional banking processes, positioning Georgia as a leading fintech hub and enhancing Checkout.com’s US operations. The company expects its US chartered services could be fully operational by 2026. Even with the new charter, Checkout.com plans to retain its current partnerships with banks like Cross River Bank and Pathward Financial, viewing the charter process as a long-term enhancement to—rather than a replacement for—existing collaborations.
If its application is approved, Checkout.com will not only strengthen its foothold in the US but also demonstrate a strong commitment to innovation and competition in the rapidly evolving payments industry.
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