LONDON: European fintech company Token.io announced Tuesday that HSBC has become a strategic investor, signaling a strengthened partnership focused on advancing account-to-account payment solutions.
The investment, revealed at Money20/20 Europe, marks a milestone for Token.io, which has powered HSBC’s Open Payments solution since 2019. The London-based firm specializes in account-to-account (A2A) payment infrastructure, enabling direct bank transactions through open banking technology.
“We are excited to deepen our partnership with HSBC,” said Todd Clyde, CEO of Token.io. “This investment will accelerate our growth and innovation while advancing our shared vision of making Pay by Bank a mainstream payment method — benefiting HSBC’s customers across the region.”
HSBC’s Open Payments solution allows customers to initiate secure bank payments from third-party platforms. The bank is also expanding its use of Token.io’s infrastructure for Pay by Bank, offering faster and more secure peer-to-peer payments, account deposits and loan repayments.
“Our investment reflects our confidence in Token.io’s team and technology,” said Manish Kohli, HSBC’s head of global payments solutions.
“We believe open banking solutions are key to transforming payments for businesses and consumers.”
Pay by Bank, powered by open banking and real-time payment systems, reduces transaction costs and simplifies checkout by allowing users to pay directly from their bank accounts. Token.io’s technology already supports Pay by Bank for most U.K. and European bank accounts.
Analysts project that by 2029, 75% of Europeans will regularly use Pay by Bank, with transaction volumes growing 30% this year. By 2030, it is expected to become the second-most popular e-commerce payment method in Europe, behind only digital wallets.
Token.io also secured additional funding from most of its existing investors, underscoring industry support for the development.