TabaPay Aims to Become TabaBank After Raising $155 Million

Payment platform TabaPay has revealed plans to acquire Colorado-based Transact Bank, as announced on September 2nd. This strategic move comes alongside the revelation of a $155 million strategic growth financing led by FTV Capital. The acquisition is anticipated to close during the fourth quarter of the year, contingent on regulatory approval. Upon the merger, Transact Bank, chartered by the Office of the Comptroller of the Currency (OCC) and FDIC-insured, will be rebranded as TabaBank.

Rodney Robinson, co-founder and CEO of TabaPay, expressed his enthusiasm in a press release, stating, "For nearly a decade, TabaPay has helped innovative fintech companies move money faster, more efficiently and more reliably." The acquisition aims to consolidate payments and banking capabilities under one roof, enhancing the client experience and maintaining partnerships with network banks.

Together, TabaBank and FTV's investment will bolster TabaPay's capabilities and maintain its status as a leader in payment innovation.

TabaPay's infrastructure provides payment processing through a single API, facilitating transactions across card and bank networks. The company maintains partnerships with over 20 partner banks in the U.S. and Canada and is projected to process over $100 billion in payment volume this year. The $155 million investment is expected to enable TabaBank to serve as an acquirer for all industries, across all major card networks.

This expansion will fortify TabaPay's sponsorship capabilities for merchants, ISOs, payment facilitators, and other platform customers, accelerating the company's product roadmap, including the development of innovative merchant liquidity solutions and pursuing strategic acquisitions.

The news highlights the growing trend among fintech companies seeking banking charters, with the OCC approving nine significant charters in the past 90 days, as reported by PYMNTS. This shift follows years of regulatory signals suggesting that fintech entities engaging in legally permissible activities, including digital assets and novel technologies, should have a path to becoming national banks.

Comptroller of the Currency Jonathan V. Gould emphasized this perspective in a recent statement, reflecting the renewed openness of America and the OCC to such ventures.