HSBC makes strategic investment inToken.io
In the ever-evolving world of payments, Europe is witnessing a surge in the adoption of Pay by Bank, a method that leverages open banking and real-time payment infrastructure. This growth is driven by the increasing preference for instant, bank-authorized payments among consumers and merchants.
At the forefront of this trend is Token.io, a specialist in account-to-account (A2A) payment infrastructure. The London-based company has been a partner of HSBC since 2019, and the banking giant has recently invested in Token.io, signaling a shared vision to make Pay by Bank a mainstream payment method.
Manish Kohli, the head of global payments solutions at HSBC, expressed trust and confidence in Token.io's team and technology. Todd Clyde, the CEO of Token.io, is equally excited about deepening the partnership between the two entities.
Token.io's technology powers HSBC's Open Payments solution, enabling nearly anyone with a bank account in the UK and Europe to use Pay by Bank. This service is already being expanded to offer HSBC's clients a secure, fast, and convenient option for peer-to-peer payments, account deposits, and loan repayments.
The benefits of this collaboration are expected to be felt by HSBC's customers across the region. Analysts predict that three in four Europeans will regularly use Pay by Bank by 2029, and that payment volumes will increase by 30% this year. By 2030, European's use of Pay by Bank for e-commerce is expected to eclipse all other digital payment methods, second only to wallets.
The investment from HSBC aims to accelerate Token.io's growth and innovation. This is reflected in Token.io's recent securing of additional funding from an overwhelming majority of its existing investors. A video titled "In Focus - Pay by Bank: Unlocking new use cases with Token.io, featuring Ecommpay and The Money Platform" is available to watch, providing insights into the potential of this partnership.
Pay by Bank, underpinned by open banking and real-time payment infrastructure, reduces the cost and complexity of payments and simplifies the customer experience. This is particularly beneficial in the era of instant, bank account-based payments like Wero and Request to Pay (R2P), which are gaining traction, especially in Belgium, France, and Germany.
Although open banking payment adoption is still patchy across Europe, partnerships and infrastructure providers like Token.io are crucial for overcoming barriers such as inconsistent bank APIs and slow market adoption. As Europe continues to innovate in bank account-based payments and instant payment schemes, companies like Token.io will undoubtedly play a significant role in shaping the future of payments.
- The surge in the adoption of Pay by Bank, a method that utilizes open banking and real-time payment infrastructure, is causing Europe to experience significant growth in the fintech sector.
- Token.io, a specialist in A2A payment infrastructure, has partnered with HSBC and received investment from the banking giant, indicating a shared commitment to making Pay by Bank a standard payment method.
- The collaboration between HSBC and Token.io is expected to bring numerous benefits to HSBC's customers across the region, with analysts predicting that three in four Europeans will regularly use Pay by Bank by 2029.
- The investment from HSBC aims to expedite Token.io's expansion and advancement in technology, as demonstrated by the company's recent successful fundraising efforts from existing investors.
- Pay by Bank, which is underpinned by open banking and real-time payment infrastructures, offers a cost-effective and simplified customer experience, complementing other instant bank account-based payment methods like Wero and R2P.
- As Europe continues to innovate in bank account-based payments and instant payment schemes, infrastructure providers like Token.io will be key in overcoming barriers such as inconsistent bank APIs and slow market adoption, ultimately shaping the future of global finance and investments.
