Open banking payments platform Token.io raised $40 million in a Series C funding round that it will use to continue advancing the shift from traditional payment methods like cards and wallets to open banking account-to-account (A2A) payments.
“In the next four years, the global value of open banking payments is expected to exceed $116 billion, with Europe accounting for 75% of all transactions,” Token.io CEO Todd Clyde said in a press release on Friday (May 13).
“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,” Clyde added.
The funding 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.
The fresh capital is expected to give Token added leadership in the European market as an enabler of open banking payments for payment service providers (PSPs), banks and large merchants, according to the release.
Token plans to facilitate the shift to account-to-account (A2A) payments by differentiating its platform for existing payment providers and expanding open banking connectivity across Europe. The startup is boosting premium application programming interfaces (APIs) for variable recurring payments and open finance functionality.
”Token has enjoyed strong traction winning deals with major channel partners and some of the largest global merchant acquirers,” said 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,” Jacques said.
Launched in 2016 and headquartered in London, Token aims to advance the shift from card to bank payments and help merchants, PSPs, and banks create new capabilities and revenue streams.