TabaPay has closed $155 million in growth financing led by FTV Capital, combining new investment with a secondary sale of existing shares. The money movement platform will use the funds to acquire Transact Bank, a Denver-based bank that is OCC-chartered and FDIC-insured. Once the deal closes, it will be renamed TabaBank.
TabaPay builds payment infrastructure for fintechs, lenders, and other platform businesses. Its API lets clients move money instantly across card and bank rails, and the company works with more than 20 partner banks in the US and Canada. It expects to process over $100 billion in payment volume this year.
The Transact Bank deal is expected to close in the fourth quarter, pending regulatory approval.
According to TabaPay, tightening regulations have pushed many fintechs to rely on several sponsor banks at once, which adds complexity and leaves little room for error if one relationship falls through. Owning a bank directly is meant to fix that. TabaBank will sit alongside TabaPay’s existing partner network, adding backup capacity and supporting harder use cases like digital banking and debt repayment.
The $155 million should also let TabaBank act as an acquirer across every major card network and industry, giving it broader sponsorship capacity for merchants, ISOs, and other payment facilitators.
Rodney Robinson, CEO of TabaPay, said: “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.”
TabaPay tried something similar in 2024, agreeing to buy the assets of collapsed banking-as-a-service firm Synapse. That deal fell apart when closing conditions weren’t met.