Tink, a Sweden-based fintech that provides APIs to create next-generation banking services, announced on Tuesday it received a strategic investment from PayPal (NASDAQ: PYPL) to continue its expansion across Europe. Tink reported that with the investment, PayPal has agreed to partner with it to use its Account Aggregation technology to improve product experiences for PayPal customers.
Founded in 2012, Tink provides partners ranging from big banks to individual developers with the technology to securely access financial data from across Europe to enable innovative digital financial services. Tink’s technology powers leading European players including NatWest, ABN AMRO, BNP Paribas Fortis and Klarna. While sharing more details about the investment, Daniel Kjellén, co-founder and CEO of Tink, stated:
“We’re proud to partner with a global fintech leader like PayPal to expand the reach of our technology and develop the next generation of financial services. Our partnership shows the versatility of our technology – and how it can be implemented to improve a range of use cases in businesses big and small. The investment is an indicator of the strength of the open banking movement, and it puts us firmly on the path towards our expanded connectivity goals.”
Jennifer Marriner, VP of global markets and partnerships of PayPal, went on to add:
“Open banking is transforming financial services, allowing customers to more easily move and manage their money. Tink has developed the infrastructure and data services for this new financial world and we’re excited to work together to continue to democratise financial services.”
The strategic investment by PayPal comes several weeks after Tink announced it joined forces with banking group SDC to provide a total of 120 Nordic banks access to account aggregation and payment initiation services. The access will allow the banks to make money management smarter and easier for 2.5 million customers.
“Multi-banking services – the ability to view all accounts in one interface – are about to go live in a big way across the Nordics. And for good reason. Around 75% of people in Norway and 25% in the rest of the Nordics have accounts with more than one bank. For these customers, managing their finances can feel messier and more time consuming than it should.”
