TabaPay Secures $155M to Acquire Transact Bank and Launch TabaBank
The payment infrastructure provider is acquiring a bank charter to integrate banking and payment capabilities into a single ecosystem.
TabaPay has secured $155 million in strategic growth financing to acquire Transact Bank and establish its own banking entity. The move signals a major shift for the payment infrastructure platform as it seeks to internalize banking operations and reduce its dependence on third-party sponsors.
The financing round was led by FTV Capital, providing the capital necessary for TabaPay to purchase Colorado-based Transact Bank. Once the deal closes, TabaPay intends to rename the institution TabaBank. Transact Bank is an FDIC-insured institution with a charter from the Office of the Comptroller of the Currency (OCC). The acquisition is expected to be finalized in the fourth quarter of 2026, pending the necessary regulatory approvals.
The Push for Direct Charters
TabaPay currently operates as a payment processing infrastructure provider, offering a single API for payments and payouts across various card and bank networks. The company is scaling rapidly, with reports indicating it is on track to process more than $100 billion in payment volume this year. While it currently maintains a network of over 20 partner banks across the U.S. and Canada, the acquisition of Transact Bank follows a wider industry trend where fintechs pursue direct banking licenses to gain more control over their operational stack.
Strategic Implications
By transitioning into a chartered bank, TabaPay can integrate banking and payment capabilities into a single ecosystem. According to company leadership, this integration will allow the firm to offer a more seamless experience for clients while continuing to collaborate with its existing bank partners.
From a market perspective, owning a charter allows TabaPay to serve high-risk or complex customers that traditional sponsor banks often avoid. Furthermore, the $155 million investment is expected to qualify TabaBank to act as an acquirer for all industries across all major card networks, significantly bolstering its sponsorship capabilities for payment facilitators, ISOs, and merchants.
Future Outlook
As TabaPay moves toward the Q4 2026 closing date, the industry will be watching how the integration of TabaBank affects its processing margins and client acquisition strategy. Rodney Robinson, co-founder and CEO of TabaPay, stated that the launch of TabaBank will bring these capabilities under one roof to provide a more integrated experience. The primary remaining hurdle is the regulatory approval process required for the transfer of the OCC charter.