TabaPay plans to acquire the assets of troubled BaaS company Synapse Financial Technologies.
TabaPay will use the assets to widen its selection of financial services.
The news comes as Synapse has filed a voluntary bankruptcy petition under Chapter 11.
Instant payments fintech TabaPay has announced plans to acquire the financial assets of troubled BaaS company Synapse Financial Technologies.
TabaPay will use Synapse’s assets to bolster its selection of financial services for fintech firms and financial institutions. Both TabaPay and Synapse offer payouts and payments processing technologies. Synapse, however, also provides neobanking, gig economy, lending, credit, wealth management, and embedded finance tools.
“The addition of the Synapse features is an acceleration of our TabaPay story, one dedicated to delivering great solutions that help our clients rapidly innovate, save money, and offer great financial products to their customers,” said TabaPay Co-founder and CEO Rodney Robinson. “The Synapse assets are a great and natural fit to our existing services to grow our offerings in tandem with providing continuity to Synapse clients and banks.”
TabaPay was founded in 2017 to help clients disburse and collect one million transactions daily– and in real time– on behalf of more than 2,500 clients in the U.S. and Canada. The company’s API offers direct access to 15 banking partners, 16 network connections, and full-stack payment processing. Last March, we spoke to the company’s VP of Strategic Partnerships Maggie O’Toole on her role in the industry.
Both TabaPay and Synapse were listed on Deloitte’s 2023 Fast 500. Synapse has seen a 650%+ growth over the past five years. That growth is now come to a halt, however, since Synapse has today revealed it filed a voluntary bankruptcy petition under Chapter 11. The bankruptcy comes after Synapse’s partner bank Lineage received a consent order from the FDIC earlier this year. The California-based company also signaled trouble when it laid off 40% of its staff last October after losing its client, Mercury, to its partner, Evolve Bank & Trust. Synapse was founded in 2014 and had raised $50.7 million.
TabaPay’s acquisition is pending approval by the bankruptcy court.
Photo by Sam Poullain on Unsplash
