TabaPay seeks bank charter through Transact Bank acquisition

TabaPay intends to acquire Transact Bank, N.A., as the Palo Alto, Calif.-based money movement platform seeks to bring banking and payments capabilities closer together. The planned acquisition was announced alongside $155 million in strategic growth financing led by FTV Capital. The financing includes both primary capital for TabaPay and a secondary transaction.

Transact Bank is an OCC-chartered and FDIC-insured bank based in Denver. Subject to regulatory approval, the transaction is expected to close in the fourth quarter of 2026, after which Transact Bank would be renamed TabaBank, N.A.

TabaPay said the investment and proposed acquisition would support the company's continued expansion, planned launch of TabaBank and further development of integrated payments and money movement capabilities.

"For nearly a decade, TabaPay has helped innovative fintech companies move money faster, more efficiently and more reliably," said Rodney Robinson, co-founder and CEO of TabaPay. "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."

The deal, which requires Federal Reserve approval, would give TabaPay a national banking charter through the Office of the Comptroller of the Currency. Previously, TabaPay's attempted to acquire assets from Synapse during that fintech's 2024 bankruptcy, but TabaPay terminated the deal after closing conditions weren't met.

Bring banking closer to payments

TabaPay provides instant payments and payouts across card and bank rails through a single API. The company said it is on track to process more than $100 billion in payments volume this year and ranks as the fifth-largest card-not-present processor by transaction count in the United States. It also said it serves one-third of American households through its client relationships.

The company noted that it works with more than 20 partner banks across the United States and Canada, and fintechs and other platform businesses increasingly rely on multiple sponsor banks to support different use cases, which can add complexity and limit redundancy.

Once operational, TabaBank is expected to complement TabaPay's existing bank partner network rather than replace it. The company said the bank would provide additional redundancy and support for challenging use cases, including digital banking and debt repayment, while supporting RTP, FedNow, ACH, wire transfers and card sponsorship across Visa, Mastercard, Discover and regional networks.

Charters gain strategic value

The acquisition reflects a broader fintech trend. Reuters recently reported that a growing number of fintechs, neobanks and digital-asset firms are seeking bank charters as they try to expand their roles in the financial system.

For payment companies, a charter can provide greater control over product development, compliance, sponsorship, settlement and liquidity-related services. It can also reduce dependence on outside banking partners, though it brings more direct regulatory oversight.

TabaPay said the FTV investment is expected to help TabaBank qualify to serve as an acquirer for all industries across major card networks, strengthening sponsorship capabilities for merchants, ISOs, payment facilitators and other platform customers. The company also said the capital will support product development, including merchant liquidity solutions, and possible strategic acquisitions.

"As payments infrastructure becomes increasingly complex and mission-critical, TabaPay stands out for its scale, reliability, and profitable growth," said Robert Anderson, partner at FTV Capital, who has joined TabaPay's board.

For merchant acquirers and other payments and fintech enterprises, the proposed acquisition is another sign that payment companies are reconsidering how much of the financial-services stack they want to control. The competitive question is no longer only who can move money fastest. It is who can combine money movement, sponsorship, risk management and banking infrastructure in a way that simplifies operations for clients.

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