US-based payments processor TabaPay has raised $155 million in a strategic growth financing round led by first-time investor FTV Capital, and has now also revealed plans to acquire Transact Bank NA in Colorado.

TabaPay states that the financing comprises both primary capital and a secondary transaction. The round has brought FTV Capital partner Robert Anderson onto the TabaPay board of directors.

This is the first institutional investment figure to be revealed by TabaPay. SoftBank Vision Fund 2 previously invested in 2022, though the exact amount involved in the transaction was never disclosed.

The money is being used directly to fund the acquisition of Transact Bank, which is a federally chartered and FDIC-insured bank operating out of Denver.

Transact Bank used to be known as Colorado National Bank (CNB), which was saved from administration in 2018 by Transact Pro founders Mark Moskvin and Maxim Yaroshewsky for $9 million.

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Two years later, and following a $2 million capital injection from Moskvin and Yaroshewsky and Fiserv go-live, CNB was branded as Transact Bank, focused entirely on card issuing and acquiring infrastructure for domestic and cross-border businesses.

This function aligns closely this that of TabaPay, which operates an API that lets lenders, platforms, and other fintechs move money and action instant payouts across multiple card and bank rails.

TabaPay says that once the acquisition is closed, expected in Q4 2026, subject to regulatory approval, Transact Bank will be rebranded as TabaBank NA. TabaPay has formed a new bank holding company called TabaHoldings Inc to house the purchase.

TabaBank will be structured to “complement TabaPay’s existing partner bank network”, according to the purchase announcement, providing “additional redundancy and expertise for challenging use cases”.

TabaPay says these use cases could cover digital banking and debt repayment, as well as support for “all major money movement rails”, namely RTP, FedNow, ACH, wire transfers, and card sponsorship across Visa, Mastercard, Discover, and regional networks.

The $155 million capital injection led by FTV is also expected to qualify TabaBank to serve as “an acquirer for all industries”, further bolstering TabaPay’s sponsorship capabilities.

TabaPay is now plotting a product expansion into merchant liquidity solutions, and confirms the pursuit of other “strategic acquisitions”. In view of these developments, the company says it is “on track to process more than $100 billion in payment volume this year”.

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TabaPay previously attempted to purchase select assets from now defunct Banking-as-a-Service platform Synapse Financial Technologies in April 2024, though the deal fell through only a few short weeks later, with a TabaPay spokesperson telling FinTech Futures at the time that the plug was pulled following a “failure to meet the purchase agreement closing condition”.