HSBC has made a strategic equity investment in Token.io in a move that significantly strengthens their existing partnership and reinforces both parties’ ambitions to mainstream account-to-account (A2A) payments across the continent.
HSBC deepens ties with Token.io
Announced at Money20/20 Europe, the deal marks a pivotal milestone for Token.io, which has been working with HSBC since 2019 to support its HSBC Open Payments solution.
This new financial backing will fuel the fintech’s growth while accelerating the development of real-time, bank-initiated payment options that challenge traditional card-based methods.
“We are thrilled to take our collaboration with HSBC to the next level,” said Todd Clyde, CEO of Token.io.
“This investment supports our shared goal of making Pay by Bank a standard payment option, bringing greater speed, security, and cost-efficiency to both merchants and consumers.”
Token.io’s platform enables users to initiate direct payments from their bank accounts through third-party interfaces, securely authenticating transactions via their banking app.
By eliminating the need for intermediaries, Pay by Bank not only reduces transaction costs but also enhances customer convenience – key attributes as businesses seek frictionless alternatives in an increasingly digital economy.
HSBC’s Global Head of Payments Solutions, Manish Kohli, emphasised the strategic rationale behind the investment: “Our commitment to Token.io reflects our confidence in their technology and our belief that open banking will be a driving force in the evolution of payments.”
Already embedded in HSBC’s Open Payments infrastructure, Token.io’s capabilities are now being extended to support a broader range of use cases, including peer-to-peer transfers, loan repayments, and direct-to-account deposits.
Analysts forecast that Pay by Bank adoption across Europe is set to accelerate dramatically – projecting a 30% increase in volumes this year alone, with three-quarters of Europeans expected to use the method regularly by 2029.
Token.io has also attracted renewed support from existing backers, underlining investor confidence in its trajectory.
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