Pathward Financial, a US financial holding company operating through its subsidiary Pathward, N.A., and TabaPay, a money movement platform for regulated and emerging industries, have extended their partnership through to 2031 to expand faster payment capabilities across lending and money movement use cases.
The renewed agreement will support the development of payment solutions focused on lending disbursements, cross-border money movement and preferred account funding, as both companies look to address changing requirements from consumers and businesses.
Under the expanded partnership, Pathward will continue providing acquiring sponsorship for TabaPay, supporting two-way money movement capabilities. TabaPay will use the infrastructure to support direct-to-consumer services including early and earned wage access, instalment loans, loan repayments and other payment flows.
The arrangement will allow loan proceeds to be distributed through the ACH network and push-to-card payments, while repayments can be supported through ACH and acquiring. In some lending arrangements, Pathward provides credit sponsorship for lending partners, while TabaPay manages the underlying money movement infrastructure.
Pathward and TabaPay have worked together since 2020, initially focusing on faster transfers to eligible network-branded cards through Mastercard Move and Visa Direct. The expanded agreement introduces additional payment capabilities, with PULSE Disbursements now able to send payments to Discover Network branded cards.
Pathward Financial operates as a US financial holding company focused on expanding financial access through payments and lending. Through Pathward, N.A., the company provides services across its Partner Solutions and Commercial Finance business lines for individuals and businesses.
TabaPay provides money movement technology for regulated and emerging sectors including FinTech, lending and platform businesses. The company focuses on instant money movement infrastructure designed to operate within complex regulatory environments and supports services including funds disbursements, account-to-account transfers, person-to-person payments, and merchant disbursements and settlements.
Pathward said customers will continue to access existing payment services through the partnership, supported by the bank's risk and compliance infrastructure designed for payments innovators.
Pathward chief customer officer Will Sowell said, 'TabaPay is an industry leader, and we are thrilled to deepen our existing relationship to support additional use cases so that we can expand our businesses and introduce services to new markets. Together, Pathward and TabaPay are unlocking multi-threaded opportunities to help clients grow, adapt, and deliver faster, more seamless money movement experiences.'
TabaPay co-founder and chief revenue officer Manoj Verma added, 'Pathward offers a multi-threaded approach to support various products, and our relationship has helped us further our mission of simplifying reliable, instant money movement. As seamless money movement grows more complex, our partnership extension is an important component of delivering sustainable faster payment options across new use cases that meet the evolving needs of consumers and businesses alike.'