TabaPay Secures $155M, Will Acquire Transact Bank

TabaPay said it raised $155 million in a growth financing round led by FTV Capital and will acquire Transact Bank, an OCC‑chartered, FDIC‑insured bank based in Denver. The company plans to rename the bank TabaBank and is targeting a fourth-quarter closing, subject to regulatory approval.

The financing package included both primary capital for TabaPay and a secondary transaction for existing shareholders. Company executives said the funds will support expansion of capabilities beyond TabaPay’s current sponsor‑bank model.

TabaPay provides money‑movement infrastructure to fintechs, lenders and other platforms through a single API that enables instant payments and payouts across card and bank rails. The firm works with more than 20 partner banks in the U.S. and Canada and expects to process more than $100 billion in payment volume this year.

Under the agreement, Transact Bank will continue to operate alongside TabaPay’s partner bank network as TabaBank. Company officials said the bank will add redundancy and direct banking expertise for use cases that can be difficult to support through third‑party sponsors, including digital banking services and debt repayment programs.

TabaPay and its investors said the financing is intended to qualify TabaBank to serve as an acquirer across major card networks for all industries. That capability would allow the firm to supplement its sponsorship offerings and handle card acquiring relationships directly for merchants, independent sales organizations, payment facilitators and other platform customers.

Regulatory approval is required before the transaction can close. The company is coordinating with regulators and expects the deal to complete in the fourth quarter if approvals are granted.

Earlier in 2024, TabaPay reached an agreement to buy certain assets of a bankrupt banking‑as‑a‑service provider but withdrew after closing conditions were not met. Company representatives said the Transact Bank purchase and the recent financing are intended to expand TabaPay’s vertical capabilities while maintaining partnerships with other banks in its network.

“The planned launch of TabaBank will bring payments and banking capabilities under one roof, offering our clients a more integrated experience while continuing to work alongside our network of bank partners,” Rodney Robinson, chief executive of TabaPay, stated.