TabaPay, a Mountain View, California-based payments infrastructure company, has raised $155 million in growth financing led by FTV Capital. The company plans to use part of the funding to acquire Transact Bank, an OCC-chartered and FDIC-insured bank based in Denver.
The proposed acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approvals.
Following the transaction, Transact Bank will be renamed TabaBank, N.A. and will operate alongside TabaPay under a newly established bank holding company, TabaHoldings, Inc.
Led by CEO Rodney Robinson, TabaPay provides a money movement platform that allows fintechs, lenders and other businesses to send and receive payments through a single API.
Its infrastructure supports RTP, FedNow, ACH, wire transfers, and card-based payment rails.
TabaPay processes more than $100 billion in annual payment volume and operates a network of more than 20 partner banks across the U.S. and Canada. The company says its platform serves approximately one-third of American households.
The acquisition of Transact Bank would give TabaPay direct access to a banking charter and greater control over its payment settlement infrastructure. Transact Bank is a payments-focused bank that provides banking and transaction services to merchants and channel partners without operating traditional consumer banking or branch businesses.
TabaPay plans to use the new capital to strengthen its integrated payments and money movement capabilities, expand client services, support TabaBank’s card-network acquiring capabilities, and strengthen banking sponsorship services. The company also plans to accelerate product development, build merchant liquidity solutions, and pursue strategic acquisitions.
The move comes as payment companies explore ways to support both traditional fiat payments and emerging digital-asset settlement rails. Owning a bank can provide greater control over settlement and payment infrastructure while partnerships with sponsor banks can offer a more asset-light approach.
For TabaPay, the bank acquisition represents a move toward vertical integration, giving the company more control over a critical part of its payments infrastructure as transaction volumes and demand for faster, more flexible settlement continue to grow.
