In a strategic move, instant money movement platform TabaPay is set to acquire the assets of bankrupt FinTech Synapse. The acquisition, announced recently, positions TabaPay to broaden its suite of financial services for FinTechs and financial institutions, signaling a significant expansion in its market presence.
According to a news release, TabaPay highlighted the synergies between the two companies, both of which were recognized on Deloitte’s prestigious 2023 Fast 500 list. Rodney Robinson, TabaPay’s co-founder and CEO, expressed enthusiasm about the acquisition, emphasizing the opportunity to deliver innovative solutions that drive client success and foster financial product innovation.
“The addition of the Synapse features is an acceleration of our TabaPay story,” stated Robinson. “We are dedicated to delivering great solutions that help our clients rapidly innovate, save money, and offer great financial products to their customers.”
Synapse, known for its Banking-as-a-Service platform, faced challenges leading to layoffs last year due to economic conditions impacting its clients and platforms. However, CEO Sankaet Pathak expressed optimism about the acquisition, highlighting the benefits for Synapse’s customers in joining a robust ecosystem supported by TabaPay’s extensive network and expertise.
Upon approval by the bankruptcy court, TabaPay plans to introduce new solutions that leverage Synapse’s assets, signaling a promising future for both companies and their clients. The move comes at a critical juncture when instant payment adoption remains a challenge for many small to medium-sized businesses (SMBs).
Research indicates that SMBs are increasingly reliant on instant payment methods to streamline their accounts receivable processes. However, the cost associated with receiving instant payments remains a significant deterrent for businesses, particularly micro and small SMBs.
Despite the challenges, instant payments offer quick access to funds crucial for business operations, underscoring their importance in today’s fast-paced financial landscape. As TabaPay moves forward with the acquisition of Synapse’s assets, it aims to address these challenges and unlock new opportunities for innovation and growth in the FinTech sector.
Stay tuned for further updates on this transformative acquisition and its impact on the evolving financial services landscape.