TabaPay Application to Acquire Transact Bank Becomes Public in Federal Register

TabaPay’s application to acquire Transact Bank, National Association, has been published in the Federal Register, moving the proposed bank acquisition into a formal public-comment stage at the Federal Reserve. The September 14 notice says Palo Alto, California-based TabaPay is seeking approval to become a bank holding company by acquiring the Denver-based national bank. Comments on the application must be received by October 14, 2026.

Publication is a regulatory step, not an approval of the acquisition. The Federal Reserve said the public portions of the application and related filings are available for immediate inspection at the Federal Reserve Bank of San Francisco and the Board of Governors. Interested parties may submit views on the proposal under the Bank Holding Company Act, and comments are generally subject to public disclosure.

The Federal Register notice also shows that TabaPay is asking to engage in data-processing activities through a proposed new wholly owned subsidiary. It separately seeks to continue money-transmission activities through TabaPay Payment Services LLC. Those requests place the bank acquisition within a broader holding-company structure rather than treating the filing solely as a change in ownership of Transact Bank.

Regulatory filing adds detail to an acquisition announced September 2

TabaPay had already announced its plan to buy Transact Bank on September 2. In its company announcement, TabaPay said it intends to rename the OCC-chartered bank TabaBank, N.A. after the acquisition. The company said Federal Reserve Board and Office of the Comptroller of the Currency approval will be required before the deal can be completed.

TabaPay said it expects regulatory approval in 2026 and expects the renamed bank to become operational in 2027. Those dates are company expectations, not commitments from either regulator. FTV Capital, which led a financing announced alongside the acquisition plan, separately said the proposed purchase was expected to close in the fourth quarter of 2026, subject to customary regulatory approval.

The Federal Register publication gives investors, competitors, customers and other interested parties a clear public deadline for submitting comments to the Federal Reserve. It also confirms the identity of the applicant and target, the bank holding company status TabaPay is seeking, and the additional nonbank activities included with the proposal. The notice does not announce a decision by the Board or indicate that approval is assured.

TabaPay says bank ownership would reduce dependence on multiple partners

TabaPay’s stated rationale centers on bringing more banking and payment functions under its own control. The payments company says many of its clients currently rely on multiple bank partners to deliver different services. Ownership of Transact Bank would give TabaPay a bank within its corporate structure that could support a wider set of payment and money-movement functions while reducing some of the operational complexity created by relying on separate providers.

The company is not describing the proposed bank as a replacement for every existing partner relationship. TabaPay said TabaBank would complement its current partner-bank network and provide additional redundancy for more complex use cases. It also said existing clients should not expect immediate day-to-day changes while the acquisition remains pending.

The Federal Reserve filing adds a regulatory dimension to that strategy. TabaPay is not only seeking to own a national bank. It is also asking the Board to permit data processing through a proposed subsidiary and money transmission through TabaPay Payment Services LLC. The notice cites Regulation Y for the proposed data-processing activity and section 4(c)(8) of the Bank Holding Company Act for the money-transmission activity.

If approved and completed, the acquisition would give TabaPay ownership of a national bank that the company says can support major payment rails and a broader range of banking services. TabaPay has said the bank would retain access to Federal Reserve services and would operate under a national regulatory framework. Those are part of the company’s strategic case for the purchase, but the regulatory review now underway will determine whether the proposed structure can proceed.

$155 million financing supports the broader expansion

The bank plan was announced alongside a $155 million strategic growth financing led by FTV Capital. TabaPay said the capital would help it serve a broader range of clients and use cases and support efforts to qualify as a full-service acquirer with card-network partners. FTV Capital said the financing includes both primary capital for TabaPay and a secondary component.

The $155 million figure should not be read as the disclosed purchase price for Transact Bank. TabaPay describes it as a financing for the company, and its public acquisition announcement does not present that amount as the consideration being paid for the bank. The Federal Register notice likewise focuses on the regulatory application and does not state acquisition consideration.

For TabaPay, the acquisition would represent a shift from operating solely as a payments and money-movement provider with bank relationships to owning a regulated national bank within its group. The Federal Register notice shows that the Federal Reserve review is now public and gives outside parties until October 14 to comment. Any closing still depends on the required regulatory approvals, while TabaPay’s 2026 approval target and 2027 operating timetable remain company expectations.