A Payments Processor Raised $155 Million to Buy a National Bank. What It Is Really Buying Is the Charter.

TabaPay, a card-payments processor, said on September 2 that it had closed $155 million in strategic growth financing led by FTV Capital and had agreed to acquire Transact Bank, N.A., a national bank based in Denver, Colorado. The company describes the financing as its first institutional investment. It intends to rename the bank TabaBank, N.A.

The transaction is small by banking standards and the purchase price was not disclosed. What makes it worth attention is what is being bought. Transact Bank holds a national bank charter issued by the Office of the Comptroller of the Currency and is FDIC-insured. For a payments company, that charter is the asset.

Why a Processor Wants a Charter

A non-bank payments company reaches the US payment rails through sponsor banks. Those relationships work, but they add a layer: the processor depends on partner institutions for settlement accounts, for access to the clearing systems, and for the regulatory posture that lets money move. TabaPay currently says it operates with more than 20 partner banks across the United States and Canada.

Owning a chartered bank changes the arrangement. In its own announcement, TabaPay says the OCC charter would provide broad banking powers, access to Federal Reserve services including FedNow and ACH, and the ability to operate nationally under a single federal regulatory framework rather than assembling coverage state by state. Katherine Li, writing in the company's announcement, said TabaBank would let TabaPay bring its products together under a single bank and give clients faster, more consistent and higher-quality service.

The planned launch of TabaBank will bring payments and banking capabilities under one roof, offering our clients a more integrated experience.

The Company's Own Numbers

• More than $100 billion in payment volume in 2026
• Described as the fifth-largest card-not-present processor in the US by transaction count
• Says it serves one third of American households
• More than 20 partner banks across the US and Canada
• Says it enables cost reductions of up to 75% for clients

These are figures the company and its lead investor put in a press release. They are not audited financial statements and the announcement does not define the methodology behind the ranking or the household-reach claim. Readers should treat them as the company's characterisation of its own scale.

Two Regulators Have to Say Yes

The announcement states that the acquisition requires approval from both the OCC and the Federal Reserve Board, with closing expected in the fourth quarter of 2026 and the bank operational in 2027. A change in control of a national bank is not a formality: the reviewing agencies examine the acquirer's financial resources, managerial capacity, the future prospects of the institution, and the convenience and needs of the communities served. A processor that has never operated a depository institution is a new kind of owner for the examiners to assess.

Robert Anderson, a partner at FTV Capital who joined TabaPay's board as part of the transaction, said the firm was drawn to TabaPay's scale, reliability and profitable growth, and was excited to support the company as it launches TabaBank. FT Partners acted as strategic and financial adviser, Reed Smith as legal adviser to TabaPay, and Gibson, Dunn & Crutcher as legal adviser to FTV Capital.

The Broader Pattern

Buying an existing charter rather than applying for a new one is a well-worn route into US banking, because de novo charter applications are slow and uncertain. What is notable here is the direction of travel: a processor that already moves large volumes through other people's banks is moving to become the bank. If it clears both regulators, TabaPay would settle its own transactions and hold client funds directly, with the supervisory obligations that come with a depository institution — capital requirements, examinations and consumer compliance duties it does not carry today.