Token.io wants to offer account-to-account payments

Fintech Token.io has raised $40 million to strengthen its open banking solution, improving banking connectivity across Europe, and offer an account-to-account (A2A) payment solution.

FACTS

• The round was co-led by Cota Capital and TempoCap, with participation from Element Ventures, MissionOG, PostFinance and existing investors Octopus Ventures, Opera Tech Ventures and SBI Investment.

• Token's payment volumes have grown 20 times in the last year and currently account for 21% of all account-to-account payments in the UK and Europe

• Token's customers include BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt and Vyne.

CHALLENGES

• Incentive regulatory framework: Since the UK Competition and Markets Authority (CMA) announced that it would require the nine largest UK banks to implement Variable Recurring Payment APIs (VRP) to allow customers to transfer money between their accounts, there has been growing enthusiasm for the topic of bank transfers.

• Taking advantage of the dynamism of this market: Over the next four years, the global value of open bank payments is expected to exceed $116 billion, with Europe accounting for 75% of all transactions," said Todd Clyde, CEO of Token. Europe has become a global leader in open banking, open finance and real-time payments, and Token is uniquely positioned in the market.

MARKET PERSPECTIVE

• NatWest recently announced, for example, that it would offer VRPs as a payment option via an agreement with TrueLayer, GoCardless and Crezco.

• Payment service provider SlimPay, a specialist in recurring payments, has just announced its partnership with traditional bank BNP Paribas to develop and offer new services, including a European instant transfer offering.