Google and PayPal are unconvinced by the OCC’s banking charter

separate lawsuits to attempt to shut down the charter, as they argue it goes beyond the regulator's authority. Hence, companies likely don't want to waste their resources applying for a charter that might be banned in the future.

Companies worry about harming existing relationships with state regulators by applying for the OCC's fintech charter. Many tech and fintech firms have acquired licenses from various state regulators in the past, and they don't want to harm these relationships, according to Thomas Curry, partner at Nutter McClennen & Fish LLP and the former comptroller, who called for the creation of the limited-purpose charter.

Lastly, the OCC charter may not provide companies with what they're looking for. The charter is limited, meaning that license holders would to accept deposits, which is a key reason for companies to want to become licensed. To hold deposits, they'd still need to get a regular bank charter and face separate approval by the Federal Deposit Insurance Corp. .It's still early days for the license, and the first company to apply will be closely watched by the rest of the industry.

Tech and fintech companies have so far been unsuccessful in getting access to banking licenses in the US, and it seems like it will remain this way for the time being. US neobank Varo Money was the first digital-only bank in the country to beMeanwhile, payments startup Square

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