TabaPay plans to buy Colorado’s Transact Bank and rename it TabaBank after raising $155 million

TabaPay is moving from payments infrastructure into bank ownership: the company said it plans to acquire Colorado’s Transact Bank and rename it TabaBank once the deal closes. For high-risk PSPs, the interesting part is not the branding exercise — it is the potential shift from relying on partner banks to operating with an OCC-chartered, FDIC-insured bank under the same umbrella.

1. TabaPay announced the planned acquisition on Wednesday, Sept. 2, alongside a $155 million strategic growth financing led by growth equity firm FTV Capital. The deal is expected to close in the fourth quarter, pending regulatory approval.
2. Transact Bank is chartered by the Office of the Comptroller of the Currency (OCC) and FDIC-insured. After the acquisition, the bank will be renamed TabaBank.
3. Rodney Robinson, co-founder and CEO of TabaPay, said the planned launch of TabaBank is meant to bring “payments and banking capabilities under one roof,” while still working alongside TabaPay’s network of bank partners.
4. TabaPay says it provides payment processing infrastructure through a single API for payments and payouts across card and bank networks. The company says it has more than 20 partner banks in the U.S. and Canada and is on track to process more than $100 billion in payment volume this year.
5. The company said the $155 million investment is also expected to qualify TabaBank to serve as an acquirer for all industries across all major card networks. TabaPay said that would bolster its sponsorship capabilities for merchants, ISOs, payment facilitators, and other platform customers, while also supporting merchant liquidity solutions and future acquisitions.

TabaPay also said TabaBank would be one of only a few payments-focused banks in Silicon Valley, positioned to serve local fintech and technology companies with complex money movement needs. In practice, that puts the company in the same conversation as other fintech groups trying to get closer to the charter rather than renting balance sheet and sponsorship access from somewhere else.