First, open the background you want to use. Then choose the Text tool and make the text you want to make transparent.

Right click on the layer with the text you want to make transparent. Go to Blending Options, and for effects, choose Outer Glow. You can adjust the settings to your liking.

Then you need to change the opacity of the entire layer. So go to Blending Options Default, and under Blend Mode, click on the Drop Down Menu. Change the setting from Normal to Overlay.