TabaPay eyes bank charter

TabaPay is making a major move that could streamline how you handle customer payments and financing disbursements. The company recently secured $155 million in funding to acquire Transact Bank. This acquisition gives TabaPay a national bank charter, meaning they are shifting from being a middleman to becoming the actual bank behind the transactions. For retailers and operators, this is a signal of 'vertical integration' in the payments space. Currently, most payment processors have to partner with third-party banks to move money. These layers often add costs, slow down settlement times, and create technical hurdles. By owning its own bank, TabaPay can offer faster funding and more direct control over the payment flow. If you use a financing platform that relies on TabaPay, you might see quicker payouts to your business accounts and more robust reporting. It also allows TabaPay to offer more banking-like services directly to their clients, potentially cutting out extra fees charged by traditional banks. This move reflects a broader trend where payment tech companies are becoming banks to offer more competitive and reliable services to merchants.

Source: Payments Dive

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