The agreement, the details of which are unknown, comes after a tumultuous year for Synapse, during which it was compelled to file for Chapter 11 voluntary bankruptcy.

The CEO and creator of Synapse, Sankaet Pathak, blames Mercury, a previous customer, and "issues they've been creating behind the scenes" for the bankruptcy in remarks posted on LinkedIn.

He continues, saying, "Without that, it would have been a sale like any other."

Additionally, the platform terminated nearly half of its employees in 2023. Specifically, this was done through restructuring measures that were initiated in June and affected 18% of the staff, as well as a further 40% cut that eliminated 86 positions in October.

Forbes reports that, contingent to a bankruptcy court's permission, California-based TabaPay would purchase Synapse's lending, brokerage, and credit and debit card issuance platforms; Pathak will become a part of the processor as part of the agreement.

Pathak claims that TabaPay's "longstanding profitability, robust balance sheet, and complimentary suite of solutions" would allow the fintech to "double down on our core product" in a recent blog post discussing the deal.

Using APIs, Synapse's BaaS solution enables businesses globally to introduce credit, investment, lending, deposit, and card issuance solutions. The company was founded in 2014 and has its headquarters in San Francisco.

The most recent BaaS company to be acquired in difficulty is Synapse. Fintech companies like Bond and Rize had comparable situations in 2023, which led to their forced sales.

Furthermore, substantial layoffs occurred in 2024 at BaaS platforms such as Treasury Prime, where a strategic reorientation necessitated the termination of around half of the approximately 100 staff.