- Open banking fintech startup Token has raised a $15 million Series B funding round.
- Token’s technology allows developers to offer faster bank payments.
- Funding comes from SBI Investment and Sony Innovation Growth Ventures, among others.
- “Covid-19 has driven a move to digital payments and open banking APIs have stabilized,” said CEO Todd Clyde.
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Open banking payments platform Token has raised $15 million in Series B financing.
Founded in 2016, Token is an open banking fintech startup which focuses on payments. The company was one of the first in the UK to be authorized by the national financial regulator for payment initiation.
Open banking is the means by which third-party developers, such as Token, can build applications around existing financial institutions. The sector has taken a long time to develop out of the UK and Europe, but is now accelerating.
“Covid-19 has driven a move to digital payments and open banking APIs have stabilized,” Todd Clyde, Token’s CEO told Insider. “We’ve seen our data volume double each month since then.”
Bank payments will likely overtake debit and credit card payments by 2023 in EMEA, according to Worldpay’s 2020 Global Payments report. The shift comes amid a shakeup in open banking infrastructure with banking payment rails faster and cheaper on average than card rails. Brexit is likely to accelerate this shift, with Mastercard announcing that it will increase fees for UK purchases from the EU.
Token was founded in the US but moved its operations to the UK. The startup has established a German entity to serve clients in the EU and will use part of the new funding to build out its team in Berlin, where it recently hired a new CTO.
“We want to further differentiate our tech platform and drive traffic,” Clyde added.
The round was led by new investors SBI Investment and Sony Innovation Growth Ventures alongside existing investors Octopus Ventures, EQT Ventures and the venture arm of BNP Paribas, Opera Tech Ventures.
The funding closed in early November and will help the business build toward the company’s “next milestones.”
Check out Token’s redacted pitch deck below: