TabaPay closes $155m financing; agrees to buy a bank

TabaPay, a major player in the instant money movement space, has secured $155 million in new funding and reached an agreement to acquire a Denver-based bank. For retailers and service providers, this move signals a major shift in how consumer financing payments and disbursements are handled. TabaPay currently processes over $30 billion in transactions annually for fintechs and lenders. By acquiring its own bank charter, the company can move away from relying on third-party banking partners. This consolidation means faster, more reliable instant payouts for your customers and potentially lower transaction costs for your business. When you offer consumer financing, the speed at which funds move—whether it is paying out a loan to a customer or settling a transaction with you—depends on the underlying payment rails. TabaPay's acquisition of a bank allows them to offer 'end-to-end' payment processing. This reduces the risk of service interruptions that often happen when fintechs and banks clash. For operators, this news suggests that instant financing disbursements are becoming more stable and will likely become the industry standard. Expect smoother integrations and fewer delays in the funding cycle as these 'fintech-turned-bank' models become more common.

Source: Finextra — Lending

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