Token secures $40m to scale Open Banking payments in Europe

Open Banking payments platform Token.io today announced it has raised $40 million in a Series C funding round co-led by Cota Capital and TempoCap. Element Ventures, MissionOG, PostFinance and existing investors Octopus Ventures, Opera Tech Ventures and SBI Investment also participated.

Token will use the capital to continue driving the shift from traditional payment methods like cards and wallets to Open Banking-enabled account-to-account (A2A) payments by differentiating its purpose-built platform for existing payment providers and expanding Open Banking connectivity across Europe.

Commenting on the funding news, Todd Clyde, CEO of Token.io, said: “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 method.”

Token will also accelerate further enhancement of premium Application Programming Interfaces (APIs) for variable recurring payments (VRPs) and Open Finance functionality.

The funding comes from a group of investors with deep expertise in fintech and payments with track records of backing disruptive payments firms on rapid growth trajectories.

”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. We are excited to work with the talented and experienced Token team as they scale.”

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.”

Customers that plug and play, white-label or have used Token.io’s Open Banking infrastructure to build their own propositions include BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt and Vyne.

Torch Partners advised on the financing.