The state of Georgia approved Stripe’s application for a merchant acquirer limited purpose bank charter, or MALPB.
What It Means: The charter will allow the financial services company to obtain direct membership with Visa and Mastercard and to process payments without a sponsoring bank.
Scope of the Charter: Under Georgia law, MALPBs are limited in their activity, which is designed to facilitate their merchant acquiring business. MALPB charters are prohibited from engaging in general banking activities, may not solicit or accept deposits from the general public, and may not sponsor ATMs or issue payment cards.
Broader Trend: Apart from Georgia, several other states have created, or are in the process of creating, novel bank charters.