What's Happening?
Checkout.com has achieved a significant milestone in its US expansion strategy by securing 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. This development is part of Checkout.com's broader strategy to enhance its presence in North America, where it has seen rapid growth since entering the US market in 2021. The company plans to process over $300 billion in eCommerce payment volume in 2025, with the US market poised to become its largest region globally by 2027. The charter coincides with the opening of a new office in Atlanta, Georgia, which will support existing offices in New York and San Francisco.
Why It's Important?
The acquisition of the MALPB charter is crucial for Checkout.com as it positions the company to compete directly with established US payment processors. By acting as its own acquirer, Checkout.com can offer enhanced payment solutions to enterprise merchants, potentially disrupting the market dominated by legacy players. This move is expected to drive significant growth in Checkout.com's US operations, which already represent 15% of its global business. The expansion is likely to benefit US enterprise merchants by providing them with more competitive and efficient payment processing options, thereby fostering innovation and competition in the financial sector.
What's Next?
Checkout.com plans to leverage the MALPB charter to further expand its US operations, with expectations of the US becoming its largest market by 2027. The company has appointed Jordan Reynolds as the new MALPB CEO and head of North America Banking to lead this expansion. Reynolds will focus on managing compliance and securing direct access to US card networks. The strategic establishment of the Atlanta office will serve as a hub for US payment and banking operations, supporting the company's growth trajectory and enhancing its service offerings to enterprise merchants.
