The news: Shopify is applying for money transmitter licenses across the US, per The Information. 

Shopify wants to transmit money and store funds for its users. At present, Shopify has licenses in 18 states and Puerto Rico.

How we got here: With money transmitter licenses, Shopify could hold more deposits of merchants across its platform, opening the door for lending opportunities from that liquidity. 

Shopify already has a history of providing loans to merchants through Shopify Capital—and demand has been robust. Shopify Capital’s gross loan receivables hit $1.6 billion at year's end 2025, up 43% YoY, per its form 10-K.

Why this matters: With a money transmitter license, Shopify could deepen its profitability by relying less on  partner banks, especially since it controls more than 14% of US ecommerce share, per its internal estimates and Census data, per an earnings release.

SMBs are also hungry for these lending services amid increased economic uncertainty and tariff-related pressures. If Shopify can improve the economics of its financial products, it could offer sweeter deals to merchants and seize share from competitors like Square and PayPal, which also offer robust lending programs.

• US PayPal Working Capital and PayPal Business Loans reported $1.8 billion in total merchant loans, up 23% YoY, per its form 10-K.
• And Square Loans’ origination volume spiked 23% YoY. Square Loans plans to expand loan access to 50% more merchants.

Implications for payment providers: SMBs are becoming more comfortable swerving traditional lenders in favor of fintech offerings. 

Providers that make credit lines simple and accessible are more likely to seize share as SMBs contend with narrowing margins.