TabaPay raises $155m from FTV Capital as it prepares to acquire Transact Bank

TabaPay has secured $155m in strategic growth financing from FTV Capital as it moves toward banking through the planned acquisition of Transact Bank. For high-risk and fast-scaling merchants, the important part is straightforward: the company is building a model where payments and sponsor banking sit under one roof, while still keeping its existing network of more than 20 partner banks across the US and Canada.

1. The financing combines new primary capital with a secondary transaction, and it comes alongside TabaPay’s plan to buy Transact Bank, an OCC-chartered and FDIC-insured bank headquartered in Denver, Colorado.
2. After the deal closes, Transact Bank will be rebranded as TabaBank, N.A. and placed under a new holding company, TabaHoldings, Inc. That structure is meant to give TabaPay both payments infrastructure and banking capability inside the same corporate umbrella.
3. TabaPay says the bank will add capacity for use cases including digital banking and debt repayment. It will support RTP, FedNow, ACH and wire transfers, plus card sponsorship across Visa, Mastercard, Discover and regional networks.
4. The bank is also expected to act as an acquirer across industries and major card networks, which matters for merchants, independent sales organisations and payment facilitators that need sponsor coverage across more than one rail and more than one product type.
5. Alongside the banking push, the $155m will fund product development, including new merchant liquidity tools, as well as potential acquisitions. TabaPay says it is on track to process more than $100bn in payment volume this year, is the fifth-largest card-not-present processor in the US by transaction count, and its services are used by around one-third of American households.

TabaPay currently serves fintechs, lenders and high-growth platforms across the US and Canada through a single API for both card and bank rails. The company says that setup can cut client costs by as much as 75% while improving reliability, which is the sort of claim that tends to matter when sponsor banking gets messy and everyone starts asking who is actually sitting in the flow.