Fintechs Seek Greater Control and Flexibility with Banking Charters

Payments companies like Stripe, Affirm, PayPal, Revolut, Fiserv, and Checkout.com are seeking federal and state banking charters to gain greater control, flexibility, and cost savings. A charter would allow them to offer services like deposit accounts and long-term loans without partnering with traditional financial institutions, and provide access to payment rails like RTP and ACH. Companies like Affirm already offer banking services but must partner with banks and credit unions to do so. A charter would eliminate the need for these partnerships and allow for further services to be offered.