TabaPay has announced plans to acquire Denver-based Transact Bank while securing a $155 million strategic growth financing led by FTV Capital. The payment infrastructure firm expects the transaction to close in the fourth quarter of 2026, subject to regulatory approvals. Once completed, Transact Bank will be renamed TabaBank and brought alongside TabaPay under a newly created holding company, creating a more integrated money movement platform.
A Vertically Integrated Banking Strategy
The deal marks a significant shift for TabaPay from a partner-bank model toward vertical integration. The company currently works with more than 20 partner banks in the United States and Canada and processes payments across card and bank rails through a single application programming interface. Acquiring an Office of the Comptroller of the Currency chartered and FDIC insured bank would give TabaPay direct access to federal payment systems and a shared banking infrastructure.
Transaction Details and Regulatory Path
Transact Bank is a federally chartered national bank with a payments-focused business and existing memberships in major card networks. It will operate under the TabaBank name after closing, while TabaPay and TabaBank are expected to function side by side under TabaHoldings. The transaction remains subject to approval from federal regulators and is anticipated to close in the fourth quarter of 2026.
Expanded Capabilities and Client Benefits
TabaPay said the planned launch of TabaBank will bring payments and banking capabilities under one roof for clients. The company can offer merchants, independent sales organizations, payment facilitators, and other platform customers broader sponsorship and acquiring support. Direct access to Fed services such as FedNow and ACH payment mechanisms would also reduce reliance on external bank partners while maintaining existing relationships.
Investment Focus and Market Position
The $155 million financing led by FTV Capital will support TabaPay's product roadmap, merchant liquidity solutions, and potential strategic acquisitions. Part of the capital is expected to strengthen TabaBank's foundation and position it to serve as an acquirer across all major card networks. FTV Capital partner Robert Anderson will join TabaPay's board as part of the investment.
Growth in a Changing Fintech Environment
TabaPay reports that its infrastructure touches roughly one-third of American households and is on track to process more than $100 billion in payment volume this year. It also ranks as the fifth-largest card-not-present processor by transaction count in the United States. The acquisition reflects a broader trend in which scaled payment companies seek direct banking charters to gain greater control over compliance, network access, and fund flows.
A New Benchmark for Payments-Focused Banking
Transact Bank already positions itself as a payments-focused institution with account, card, processing, and regulatory technology products. The combined entity is expected to support real-time payments, ACH transfers, wire transfers, and sponsorship across major card networks, including Visa, Mastercard, and Discover. TabaPay has indicated that its existing partner banks will continue to operate alongside TabaBank, preserving flexibility for clients in regulated sectors.
TabaPay's planned acquisition of Transact Bank and the $155 million FTV-led investment represent a decisive step toward a vertically integrated payment and banking model. If approved, the combination would create one of only a few payments-focused banks in Silicon Valley and strengthen TabaPay's ability to serve complex money movement needs. The deal signals that established payment infrastructure providers are increasingly pursuing regulated banking capabilities to support long-term growth.