What's Happening?
Checkout.com, a leading payments company, has achieved a significant milestone in its US expansion by securing approval for a Merchant Acquirer Limited Purpose Bank (MALPB) charter from the State of Georgia Department of Banking and Finance. This charter will allow Checkout.com direct access to US card networks, enabling it to act as its own acquirer. The move is part of Checkout.com's strategy to enhance its presence in the US market, which has seen rapid growth since the company entered US merchant acquiring in 2021. The US market now represents 15% of Checkout.com's global business, with volumes growing by over 80% in 2024. The company plans to process more than $300 billion in eCommerce payment volume in 2025.
Why It's Important?
The approval of the MALPB charter is a pivotal development for Checkout.com, positioning it as a formidable competitor to established US payment processors. By gaining direct access to card networks, Checkout.com can offer improved payment performance and control to its enterprise clients, enhancing the customer experience. This expansion reflects the growing importance of the US market in Checkout.com's global strategy, with expectations that the US will become its largest region by 2027. The move also underscores the increasing demand for digital-first payment solutions and the shift towards more efficient and streamlined payment processing in the eCommerce sector.
What's Next?
Checkout.com is set to further expand its US operations with the establishment of a new office in Atlanta, Georgia, complementing its existing offices in New York and San Francisco. The company has appointed Jordan Reynolds as the new MALPB CEO and head of North America Banking to lead the expansion. As Checkout.com continues to grow its presence in the US, it will focus on delivering tailored payment solutions to enterprise merchants, challenging legacy payment processors. The company's strategic investments and leadership appointments signal its commitment to becoming a major player in the US payments industry.
