Fiserv seeks special purpose bank charter

The designation would allow the payment processor to own transactions from end-to-end, removing the need for a bank partner.

Payment processor Fiserv has applied to obtain a merchant acquirer limited purpose bank charter in Georgia, enabling the company to authorize, settle and clear payment transactions for merchants, according to a company spokesperson.
“We are taking this step in response to recent market changes, as third-party financial institutions that have traditionally provided access to the card networks as sponsor banks increasingly focus on other areas of their business,” the Fiserv spokesperson said in a Thursday email.
There’s no official approval timeline, but the Brookfield, Wisconsin-based company expects the process to be complete sometime during the first half of the year, the spokesperson said.