TabaPay has closed a USD 155 million financing round led by FTV Capital and has announced plans to acquire Transact Bank.
According to the announcement, the round comprises both primary capital and a secondary transaction. Alongside the financing, TabaPay has announced its intention to acquire Transact Bank, N.A., an OCC-chartered, FDIC-insured bank based in Denver, Colorado, US.
The investment and the planned acquisition are intended to support TabaPay's vertical integration strategy and strengthen its payments and money movement capabilities. Once the acquisition closes, Transact Bank will be renamed TabaBank, N.A., operating alongside TabaPay under a newly registered bank holding company, TabaHoldings. The proposed acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approval.
Platform scale and infrastructure
TabaPay operates a money movement infrastructure for fintechs, lenders, and other high-growth platforms. Through a single API, the company enables payments and payouts across card and bank rails, with a stated aim of helping customers reduce costs by up to 75%. TabaPay works with a network of more than 20 partner banks across the US and Canada, is on track to process more than USD 100 billion in payment volume this year, and ranks fifth among card-not-present processors in the US by transaction count.
Addressing sponsor bank complexity
Fintechs and platform businesses increasingly rely on multiple sponsor banks to support a broad range of use cases, a structure that can add operational complexity and limit redundancy as regulatory requirements evolve. The planned acquisition of Transact Bank and the launch of TabaBank are intended to address this by complementing TabaPay's existing partner bank network. In addition, TabaBank is expected to support digital banking and debt repayment use cases, alongside major money movement rails including RTP, FedNow, ACH, and wire transfers, as well as card sponsorship across Visa, Mastercard, Discover, and regional networks.
The USD 155 million investment is also expected to qualify TabaBank as an acquirer across all industries and major card networks, extending TabaPay's sponsorship capabilities to merchants, independent sales organisations, and payment facilitators. TabaPay has said the funding will support its product roadmap, including merchant liquidity solutions and further acquisitions.
