From PaymentsDive-Payment processor Fiserv has applied to obtain a merchant acquirer limited purpose bank charter in Georgia, the company confirmed earlier this month. The charter would enable Brookfield, Wisconsin-based Fiserv to authorize, settle and clear payment transactions for merchants, removing the need for a bank partner. Alpharetta, Georgia is among Fiserv’s major office locations.
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For a business that's explicitly said that they want to avoid being subject to additional regulations... a bank charter application seems to be an odd choice. Perhaps the limited purpose charter is less impactful than I would initially expect.
The Article
https://www.paymentsdive.com/news/fiserv-special-bank-charter-malpb-merchant-acquirer-georgia-visa-mastercard/705570/
So Fiserv can alienate the general public and merchants, directly. What could possibly go wrong?
For Fiserv, the move not only shaves costs and bolsters margins, it potentially enhances the company’s embedded finance play and increases its stickiness with clients. Robertson expects Fiserv will “almost certainly” pursue offering other financial services once it’s secured a charter, such as debit cards to fund merchants.
The more relationships a processor-acquirer can establish with a merchant, the less likely it is the merchant will leave to find another provider, he added.