Token, an Open Banking platform supporting the transition from card to account-to-account bank payments across Europe, has acquired $40 million via a Series C round that was co-led by Cota Capital and TempoCap.
Element Ventures, MissionOG, PostFinance and existing investors Octopus Ventures, Opera Tech Ventures and SBI Investment, also took part in the investment round.
Token’s management noted that they will use the proceeds to further expand open banking connectivity across Europe and launch APIs for Variable Recurring Payments and open finance apps.
Todd Clyde, CEO of Token.io, stated:
“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. 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.”
Clients that plug and play, white-label or have used Token.io’s open banking infrastructure to implement their own propositions reportedly include BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt and Vyne.
With offices in London, Berlin, and San Francisco, Token presently claims to handle tens of millions of open payments yearly for more than 80 different payment service providers, gateways, banks and large merchants.
Kevin Jacques, partner at Cota Capital, said:
“Token has enjoyed strong traction winning deals with major channel partners and some of the largest global merchant acquirers. 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. Token’s technology is enabling an impressive set of payment providers to offer seamless experiences for their merchant customers and, in turn, end users. 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.”