TabaPay Secures $155M Growth Financing and Unveils Plans to Acquire Transact Bank

TabaPay has secured $155 million in strategic growth financing led by FTV Capital, alongside a planned acquisition of Denver-based Transact Bank, N.A. This move signals a significant shift toward vertical integration for the money movement platform, allowing it to bring banking and payment capabilities under a single regulatory umbrella to better serve fintechs and lenders.

What was announced

TabaPay’s $155 million financing includes both primary capital for the company and a secondary transaction. The centerpiece of the announcement is the intent to acquire Transact Bank, N.A., an OCC-chartered and FDIC-insured institution. Upon completion of the deal, the bank will be rebranded as TabaBank, N.A., and will operate under the newly formed TabaHoldings, Inc., a registered bank holding company. The acquisition is expected to close in the fourth quarter of 2026, subject to customary regulatory approval.

The move is designed to address the evolving regulatory landscape where fintechs increasingly require multiple sponsor banks for redundancy and complex use cases. TabaBank will support a full suite of money movement rails, including RTP and FedNow, ACH, wire transfers, and card sponsorship for Visa, Mastercard, and Discover. TabaPay currently processes over $100 billion in annual payment volume and serves one-third of American households, ranking as the fifth-largest card-not-present processor by transaction count in the United States. Through its single API, the platform claims to help customers reduce costs by up to 75% while simplifying payment workflows. The new investment is also intended to qualify TabaBank as an acquirer across all major card networks, which will bolster sponsorship capabilities for merchants, ISOs, and payment facilitators. Furthermore, the capital is earmarked to accelerate the company's product roadmap, including the development of merchant liquidity solutions and potential strategic acquisitions.

"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. Together, TabaBank and FTV’s investment will expand our capabilities and help keep TabaPay at the forefront of payment innovation."

Rodney Robinson, co-founder and CEO of TabaPay.

The companies involved

TabaPay is a Palo Alto-based money movement platform that provides critical infrastructure for fintechs, lenders, and high-growth platforms. It has established a significant footprint in the U.S. and Canadian markets, maintaining a network of more than 20 partner banks. The company specializes in instant payments and payouts across various card and bank rails, positioning itself as a central node for complex financial workflows. FTV Capital, the lead investor in this round, is a global sector-focused growth equity firm with a long history of investing in payments and financial technology. As part of this strategic investment, Robert Anderson, a partner at FTV Capital, has joined TabaPay’s board of directors.

Transact Bank, N.A., the acquisition target, is a national bank based in Denver, Colorado. Its integration into the TabaHoldings structure represents a transition for TabaPay into a fully integrated financial services provider. Several high-profile firms advised on the transaction: Financial Technology Partners (FT Partners) served as the exclusive strategic and financial advisor, while Reed Smith provided legal counsel to TabaPay. FTV Capital was represented by legal advisor Gibson, Dunn & Crutcher LLP. Once operational, TabaBank will be one of the few payments-focused banks located in Silicon Valley, specifically targeting technology companies with sophisticated money movement needs.

What this means

This move reflects a growing trend of "fintech-to-bank" vertical integration, where processors seek to own both the ledger and the license to reduce reliance on third-party sponsor banks. By becoming a bank holding company, TabaPay is positioning itself to capture more of the value chain and mitigate the regulatory friction that has recently challenged the traditional sponsor banking model. The industry is under increasing pressure to provide more robust redundancy and direct access to rails like FedNow and RTP. TabaPay’s hybrid approach—maintaining its existing partner network while owning a bank—addresses these demands head-on. It raises the stakes for pure-play processors who may find themselves at a competitive disadvantage without their own charter.