TabaPay Raises $155 Million, Plans Transact Bank Acquisition

TabaPay provides payments infrastructure that enables fintech companies and merchants to move money in real time. Its planned expansion into banking marks a strategic shift from serving primarily as a technology provider to operating a more integrated payments-and-banking platform. Owning an FDIC-insured institution could give the company greater control over settlement, money movement and related financial services while reducing its reliance on external bank partners.

TabaPay said it closed a $155 million strategic financing led by growth-equity firm FTV Capital and agreed to acquire FDIC-insured Transact Bank. The transaction is expected to close in the fourth quarter, after which the lender will be renamed TabaBank. The deal is intended to combine TabaPay’s payments capabilities with regulated banking functions under a single platform.