New Bank Charters Shift the Payment Processing Market

This IDC Perspective examines the evolving landscape of merchant acquiring in the United States, highlighting a shift from banks' direct involvement to payment processors seeking specialized bank licenses such as Industrial Loan Companies (ILCs) and Merchant Acquirer Limited Purpose Banks (MALPBs). This trend enables processors to expand financial service offerings, streamline operations, and access payment networks directly, enhancing value for merchants and ISVs. "As merchant processors pursue bank licenses, the lines between banking and payments are blurring, giving merchants and ISVs options for financial partnerships." - Aaron Press, research director, Worldwide Payment Strategies, IDC