Token lands $40 million to expand open banking payments in Europe

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Investors in the latest token fundraising include Cota Capital and TempoCap.

Image source: Pexels/Ivan Samkov

Open banking payments platform Token.io has raised $40 million in a Series C funding round as it seeks to drive a shift from card-based to “account-to-account” payments.

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.

Since the UK’s Competition and Markets Authority (CMA) announced it would require the UK’s nine largest banks to implement Variable Recurring Payment (VRP) APIs to allow customers to transfer money between their accounts, excitement has grown in the open banking payments space.

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

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

The fintech will use the capital to try to boost its account-to-account (A2A) payment capabilities, including improving banking pen connectivity across Europe.

“Over 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,” said Todd Clyde, CEO of Token.io.

“Europe has become a global leader in open banking, open finance and real-time payments, and Token has a unique position in the market. 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 customers include BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt and Vyne.

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Mary I. Bruner