Token lands $40m to scale open banking payments in Europe

Open banking payments platform Token.io has raised a $40m in a Series C funding round as it looks to drive a shift from card to ‘account to account’ payments. 

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

Since the UK Competition and Markets Authority (CMA) announced it will require the nine biggest UK banks to implement Variable Recurring Payment (VRP) APIs to enable customers to sweep money between their accounts, more excitement has been building in the open banking payments space.  

NatWest recently, for example, annouced it will offer VRPs as a payment option via a deal with TrueLayer,GoCardless and Crezco.

Token wants to scale European open banking payments for payment service providers (PSPs), banks and large merchants. 

The fintech will use the capital to try and boost its Account-to-Account (A2A) payments capabilities including improving pen banking connectivity across Europe. 

“In the next four years, the global value of open banking payments is expected to exceed $116bn, with Europe accounting for 75 per cent of all transactions,” said Todd Clyde, CEO of Token.io. 

“Europe has become a world leader in open banking, open finance and real-time payments, and Token holds a unique position in the marketplace. With this investment, we will continue to expand open banking connectivity and push the boundaries of functionality beyond regulatory requirements to make A2A payments a mainstream payment method.” 

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