Token.io, an Open banking payment platform, announced that it has secured $40M in a Series C funding round co-led by Cota Capital and TempoCap.
Others, including Element Ventures, MissionOG, and PostFinance as well as the existing investors Octopus Ventures, Opera Tech Ventures, and SBI Investments are also involved. Torch Partners advised on the financing.
How will the funding be used?
The company will use the funds to accelerate the shift from traditional payment methods to account-to-account (A2A) payments powered by open banking.
Token plans enhance premium Application Programming Interfaces (APIs) for Variable Recurring Payments (VRPs) and Open Finance functionality.
Todd Clyde, CEO of Token.io says, “In the next four years, the global value of open banking payments is expected to exceed $116B, with Europe accounting for 75% of all transactions,” comments Todd Clyde, CEO of Token.io.
He adds,“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.”
Open banking payment platform
Founded by Marten Nelson, Steve Kirsch, Todd Clyde, and Yobie Benjamin, Token is an open banking platform driving the shift from card to account-to-account bank payments in Europe.
With Token’s complete toolkit, merchants, PSPs, and banks create new capabilities and revenue streams through our broadest, Pan-European connectivity to over 3,000 banks. Token is both bank and developer-friendly, and multi-standard by design.
As per the company’s claims, it processes tens of millions of open payments annually for over 80 payment service providers, gateways, banks and large merchants.
Currently, Token offers open payment and data connectivity in Europe, spanning 16 EU countries, representing over 210M potential end-users of Open Banking services and over €13T in customer deposits.
Token.io Limited is authorised as an AISP and PISP by the Financial Conduct Authority (FCA) in the UK.
Currently, Token works with various global clients, including BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt, and Vyne.
”Token has enjoyed strong traction winning deals with major channel partners and some of the largest global merchant acquirers,” says Kevin Jacques, partner at Cota Capital.
“We believe that payments present the biggest disruption and opportunity in open banking and that Token is well-positioned to benefit from the continued growth of low-cost, low-friction A2A payments. We are excited to work with the talented and experienced Token team as they scale,” he adds.
Adam Shepherd, TempoCap Investment Partner, added: “Token’s A2A payments offering delivers faster and more secure payments than traditional methods while at a lower cost. Our previous investments at TempoCap have shown us the increasing importance of embedded finance, and we are delighted to support the Token team in this next phase of the company’s growth.”