Token

Token.io Teams Up with Santander to Drive Innovation in Payments

Token.io Teams Up with Santander to Drive Innovation in Payments
By David Penn Posted on
Categories: Alumni News, Daily news, Token
  • Token.io has teamed up with Santander UK, a subsidiary of Banco Santander.
  • Santander UK will leverage Token.io’s open banking connectivity and infrastructure to enable account-to-account payments for credit card repayment.
  • Founded in 2015, Token.io most recently demoed its technology on the Finovate stage at FinovateEurope 2017.

Account-to-account (A2A) payment infrastructure company Token.io has forged a partnership with Santander UK.

The goal of the collaboration is for the bank to leverage Token.io’s open banking connectivity and infrastructure to enhance the customer experience and develop new, real-time payment solutions. Santander will first use Token.io’s infrastructure to enable direct payments from external bank accounts as an option for credit card repayments, creating a more seamless payment experience compared to both direct debit and manual bank transfer. These direct account-to-account payments for card repayments also support biometric Strong Customer Authentication (SCA) for payments made on mobile devices.

“We are thrilled to partner with Santander, a forward-thinking institution committed to driving open banking innovation and enhancing the experience of millions of customers,” Token.io CEO Todd Clyde said. “Token.io’s technology, combined with Santander’s dedication to exceptional service, will undoubtedly set new standards for how financial institutions leverage open banking to create innovative value propositions that meet the evolving needs of consumers and businesses.”

A subsidiary of Banco Santander, Santander UK has more than 14 million customers in the U.K. The bank offers mortgages, auto financing, unsecured loans, credit cards, banking, savings and investment accounts, as well as insurance products. In addition to using Token.io’s technology to support its A2A offering, Santander UK also plans to leverage the fintech’s infrastructure to enhance its real-time money movement capabilities for its retail banking customers.

This week’s news from Token.io comes just days after the U.K.-based fintech announced that it had expanded its partnership with global payments platform Ecommpay. The global payments platform added Token.io’s virtual accounts in four new markets — France, Ireland, the Netherlands, and Spain — to its Open Banking Advanced solution. The virtual accounts will enable e-commerce companies to get real-time settlement confirmation and make API-powered refunds or payouts, boosting both the speed and efficiency of transactions.

“Our partnership with Ecommpay continues to demonstrate the immense potential of open banking in transforming payment experiences and also highlights the opportunities that PSPs can realize when they embrace innovative, customer-centric solutions,” Clyde said.

Token.io made its Finovate debut at FinovateSpring 2015 and returned to the Finovate stage two years later at FinovateEurope in London. The company provides direct connectivity to more than 567 million bank accounts in 20 markets. Token.io’s customers include HSBC, BNP Paribas, and Global Payments, as well as fellow Finovate alums Mastercard and ACI Worldwide. The company has raised $90 million in funding according to Crunchbase, most recently securing a Series C investment of $40 million in 2022.

Photo by Markus Spiske

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Fintech Rundown: A Rapid Review of Weekly News

Fintech Rundown: A Rapid Review of Weekly News
By Julie Muhn (@julieschicktanz) Posted on
Categories: Fintech Rundown, Ripple, Token

With Halloween and the U.S. election on the horizon, things may be getting spookier, but that’s not the case in fintech! We’ve seen some potential good news in VC funding trends and expect that there is more to come. Stay tuned throughout the week to read the latest news this week as we post updates and evolutions.

Small business financial management tools

HubSpot to acquire B2B billing management and CPQ solution, Cacheflow.

Pivot Payables joins American Express Sync.

Lending & credit

Digital origination and decisioning technology company Amount launched its unified account opening and loan origination platform.

AperiData introduces credit score fully powered by open banking.

Investing & wealth management

Apex Fintech Solutions agrees to acquire fintech and design agency FinTron.

Facet raises $35 million to broaden access to financial advice.

DriveWealth integrates with multiple execution management system (EMS) platforms, including Bloomberg EMSX, LSEG Autex and TRAFiX. 

Regtech

Regulatory reporting software provider Regnology is acquiring CG3-1, a company that specializes in regulatory calculations for the U.S. broker-dealer industry.

Relyance raises $32 million to help companies comply with data regulations.

Open banking

Token.io and Santander team up to leverage open banking to enhance credit card repayments.

Crypto / Defi

Ripple announces readiness to launch its US dollar-denominated stablecoin, Ripple USD (RLUSD).

Insurtech

Paymentus accelerates digital disbursements for insurance claims payouts.

One Inc and J.P. Morgan Payments collaborate to enhance unified payment platform for insurance.

Payments

Instant Financial expands pay options with the launch of Instant Direct to offer employees earned wage access.

Photo by Rizki Yulian on Unsplash

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Finovate Global Germany: Sustainable Investing for Families and Embedded Lending for SMEs

Finovate Global Germany: Sustainable Investing for Families and Embedded Lending for SMEs
By David Penn Posted on
Categories: Finovate Global, Klarna, Nubank, Token, Wise

This week’s edition of Finovate Global takes a look at recent fintech developments in Germany.

German fintech Bling launched its SavingsTrees solution this week. The new offering helps German families invest sustainably starting with as little as €1 a month. The solution is offered in partnership with wealthtech Evergreen, and represents an evolution in Bling’s product line, expanding from its origins as a family money management educational app and prepaid card.

“Simplicity and sustainability were paramount in the development of our investment offering,” Bling CEO and co-founder Nils Feigenwinter explained. “We prioritize families in our product development to offer a tailored solution that meets their needs. Everyone underestimates the market potential of families, which is why banks have neglected this area for decades. With Bling, we are addressing this.”

Cost savings was one of the reasons why Bling reached out to Evergreen. Cost is also one of the main reasons why more than 80% of German parents do not invest in the country’s capital markets, according to Bling. The complexity of investing and a lack of knowledge about investment products also have contributed to this lack of participation. To this end, Bling leverages visualizations and explanations from finance experts to make the investment process easier to understand.

Funds invested in SavingsTrees are globally diversified and are allocated specifically to sustainable investments. Direct investments in sustainable projects and companies, are available, as are investments in funds that support sustainability initiatives.

Read more about Bling in this TechCrunch profile from December.

Banxware, an embedded lending technology provider headquartered in Germany, has teamed up with Netherlands-based Rabobank to help SMEs secure the financing they need in order to grow. Rabobank will take advantage of Banxware’s embedded lending solution, which enables businesses to apply for short-term financing in as little as 15 minutes. After approval, funds can be available in the borrower’s account within 24 hours.

“This partnership brings Embedded Financing products tailored to the need of SMEs to popular business platforms,” Banxware CEO Miriam Wohlfarth said. “Together with Rabobank we now provide the full financing supply chain, including funds and end-to-end loan management to bridge cash flow shortfalls before they become an issue.”

The deployment will let business founders and owners apply for financing in familiar, everyday digital environments such as e-commerce platforms and booking software. Each firm will focus initially on marketing the solution in their home markets of Germany and the Netherlands, respectively.

Banxware’s partnership announcement follows news that the Berlin-based fintech had teamed up with liquidity management and financial planning company Agicap. Based in France, Agicap helps businesses automate, manage, and forecast their cash flows. Via its strategic partnership with Banxware, Agicap will add access to quick and tailored growth capital to its liquidity management offering.

“From now on, (SMEs) can not only see and manage their cash flows in a centered way, but they can also get new money when there are opportunities for growth,” Agicap Country Manager DE Stephan Krehl said.

Founded in 2020, Banxware is headquartered in Berlin. The company has raised $15 million (€14 million) in funding from investors including Varengold Bank and Element Ventures.

Finovate is proud to showcase fintech innovations from companies headquartered in Germany. This includes hosting our annual European fintech conference in Berlin in 2020.

Here’s a quick list of some of the Germany-based companies that have demoed their fintech innovations on the Finovate stage over the years.

  • aixigo
  • ayondo
  • Bitbond
  • BörseGo 
  • Cash Payment Solutions
  • Coconet
  • collectAI
  • Device Ident
  • Ecolytiq
  • figo
  • Fincite
  • FinTecSystems
  • Fintura
  • HAWK:AI
  • iBrokr
  • IND Group
  • Kreditech
  • Mambu
  • Modifi
  • NDGIT
  • Nextmarkets
  • Open Bank Project (OBP)
  • payever
  • Payworks
  • Pockets United
  • Risk Ident
  • Scalable Capital
  • Smartify.it
  • SOFORT
  • SwipeStox
  • TeamViewer
  • TESOBE
  • Vaamo
  • YUKKA Lab

Here is our look at fintech innovation around the world.

Middle East and Northern Africa

  • Egypt-based fintech Axis launched its new digital payments platform, AxisPay
  • Dubai Islamic Bank launched its DIB ‘alt’ product, a new digital umbrella brand for the bank’s digital offerings.
  • UAE-based B2B fintech solutions provider FOO introduced its prepaid travel card and white label digital wallet.

Central and Southern Asia

  • India-based digital lender Lentra raised $27 million in a Series B extension round.
  • BNE Intellinews profiled Uzbekistani SME lender, Oasis.
  • India’s PayU partnered with Visa and Yes Bank to launch its Business Payment Solution Provider program.

Latin America and the Caribbean

  • Argentina-based mobile banking company Uala launched a new saving account offering in Mexico.
  • Brazil’s Nubank reached one million accounts in Mexico milestone in one month.
  • Lanistar introduced crypto trading on its app for users in Brazil.

Asia-Pacific

  • Singapore-based B2B payment infrastructure platform Thunes raised $60 million in Series C funding.
  • International payments software provider OpenWay launched a second hub in Vietnam.
  • Wise platform inked its first Japanese partnership, teaming up with GMO Aozora Net Bank.

Sub-Saharan Africa

  • Nigerian fintech Flutterwave forged a partnership with account-to-account (A2A) payments company Token.io.
  • International payment solutions company Unlimit secured license to operate in Kenya two months after expanding to Nigeria.
  • Harvard Business Review asked and answered the question “What African Fintech Startups Can Teach Silicon Valley About Longevity?”

Central and Eastern Europe

  • Klarna brought its Pay in 3 offering to Romania this week.
  • German identity verification company IDnow added automated document liveness capabilities, financial risk checks, and more to its platform.
  • International development agency USAID partnered with Albanian business solutions provider CBS to launch, Lores Plus, a platform to help Albanian SMEs get access to financing.

Photo by javier gonzalez

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Flutterwave and Token.io Enable Pay-By-Bank Transfers in U.K. and E.U.

Flutterwave and Token.io Enable Pay-By-Bank Transfers in U.K. and E.U.
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Token
  • Flutterwave is integrating account-to-account payment infrastructure from Token.io.
  • Using Token.io’s technology, Flutterwave will add A2A payments to its Collect Payments and Send by Flutterwave products.
  • A2A payments are projected to exceed 6.5 billion in annual global volumes by 2027.

Africa-based payments technology company Flutterwave announced this week it has selected account-to-account (A2A) payment infrastructure provider Token.io to power A2A payments– also known as pay-by-bank capabilities– on its platform.

The move is expected to simplify money transfers for Flutterwave’s African users in the U.K. and E.U. looking to send money back to their home country.

Token.io was founded in 2016 and leverages open banking to offer payment providers the infrastructure they need to launch A2A payment capabilities without a team of developers. With a single API, payment providers can help their end users pay without a payment card. Token.io supports more than 567 million bank accounts– representing more than 80% of bank accounts held– in 16 supported countries.

Flutterwave has integrated Token.io’s technology to help clients of its Collect Payments product offer their end customers A2A payments. The pay-by-bank capabilities will also be available on Flutterwave’s cross-border payments platform, Send by Flutterwave, in the third quarter of this year.

The addition of the new payments method comes at an ideal time. According to Token.io CEO Todd Clyde, A2A payments are projected to exceed 6.5 billion in annual global volumes by 2027.

“Our partnership with Token.io will make it even faster and easier for individuals and businesses to pay and receive money,” said Flutterwave CEO Olugbenga “GB” Agboola. “By partnering with Token.io to provide Account-to-Account payments to our customers, Flutterwave will advance its mission of connecting Africa to the global economy.”

Flutterwave aims to create a flexible and affordable way for Africans to pay in the digital era. The company, which accepts payments in more than 30 currencies, processes an average of 500,000 payments each day. In addition to its payments technology, Flutterwave also offers invoicing technology, business loans, and analytics tools. Since it was founded in 2016, Flutterwave has raised more than $470 million and has processed over 400 million transactions worth over $25 billion.

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Token Raises $40 Million for Open Banking

Token Raises $40 Million for Open Banking
By Julie Muhn (@julieschicktanz) Posted on
Categories: Alumni News, Daily news, Funding, Token
  • Open banking expert Token landed a $40 million Series C investment.
  • The round, which was co-led by Cota Capital and TempoCap, boosted the company’s total funding to $90 million.
  • Among Token’s clients are BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt, and Vyne.

Open banking innovator Token.io closed a $40 million Series C funding round this week. The investment was co-led by Cota Capital and TempoCap and boosted Token’s total funding to $90 million.

New investors Element Ventures, MissionOG, and PostFinance also pitched in, along with existing contributors Octopus Ventures, Opera Tech Ventures, and SBI Investments. 

Token will use the capital to shift consumer habits from traditional payment methods like cards and wallets to open banking-enabled account-to-account (A2A) payments. Specifically, the company aims to enhance its APIs for Variable Recurring Payments and open finance functionality.

“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,” said Token CEO Todd Clyde.

Founded in 2016, Token is focused on driving the shift from traditional payment methods– such as cash and credit cards– towards bank payments. The company’s platform works towards this mission by enhancing open banking connectivity across Europe and supporting existing payment providers.

“Token’s A2A payments offering delivers faster and more secure payments than traditional methods while at a lower cost,” said TempoCap Investment Partner Adam Shepherd. “Token’s technology is enabling an impressive set of payment providers to offer seamless experiences for their merchant customers and, in turn, end users.”

Token’s client list includes BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt, and Vyne.

Photo by Tim Douglas

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Open Banking Innovator Token Scores $15 Million

Open Banking Innovator Token Scores $15 Million
By David Penn Posted on
Categories: Alumni News, Daily news, Funding, Token

In a round led by SBI Investment and Sony Innovation Fund, open banking payments platform company Token has raised $15 million in new funding. The Series B round also featured participation from existing investors Octopus Ventures, EQT Ventures, and Opera Tech Ventures, the VC arm of BNP Paribas. The company, which made its Finovate debut at FinovateSpring in 2015, now has $50 million in total capital.

“The market’s appetite for open payments accelerated dramatically last year as more merchants and payment providers have tuned into the cost and efficiency gains that they offer,” Token CEO Todd Clyde explained. “Token’s payment volumes have more than doubled every month since March and our platform is now processing live transactions through PSD2 APIs from over 600 banks in 14 countries across Europe.” He added that the investment was an affirmation that Token would continue to lead in the open payments space and will help fuel further development in the company’s technology.

An early innovator in the open banking payments space in the U.K., Token was one of the first companies in the U.K. to earn authorization from the Financial Conduct Authority (FCA) as a payment initiation and account information service provider (PISP, AISP). In 2018, Token was the first PISP to complete an end-to-end payment via a PSD2-compliant bank API.

“Token offers a credible alternative to card and wallet payments while helping merchants, PSPs, and banks offer streamlined UX’s that deliver better payment experiences for customers,” said Sony Innovation Fund Chief Investment Manager Gen Tsuchikawa. Token’s open payment and data services support the transition away from traditional payment methods and toward account-to-account payments. This not only helps lower the cost of digital payments; it also introduces a variety of use cases for open payments, from funding accounts and billpay to credit risk analysis and cash flow management. Combine this with what SBI Investment Director and Chairman Yoshitaka Kitao described as “Token’s unrivaled bank connectivity and depth in payment services” and you have a company Kitao called a “market leader” that “has continued to outperform the competition.”

Founded in 2015 and maintaining offices in London, San Francisco, and Berlin, Token brings Pan-European connectivity to more than 3,000 banks. The company’s partners include Sberbank, Konsentus, Caxton, and HSBC, which recently launched its online payment alternative, HSBC Open Payments.

Photo by Jill Wellington from Pexels

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Finovate Alumni News

By David Penn Posted on
Categories: Fintech OS, NDGIT, Payoneer, Token

On Finovate.com

  • 2020’s Fintech Micro Trends
  • FintechOS Locks In $14 Million in Growth Funding
  • ngdit Powers Inventx Open Finance Platform

Around the web

  • Payoneer to acquire Munich, Germany-based open payment orchestration platform (POP), optile.
  • Open banking solution provider Token announces digital money spin-off, M10 Networks.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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From Start-up to Scale-up: Token Introduces New CEO Todd Clyde

From Start-up to Scale-up: Token Introduces New CEO Todd Clyde
By David Penn Posted on
Categories: Token

The promotion of Chief Operating Officer Todd Clyde to the top job at Token marks the open banking technology provider’s transition “from start-up to scale-up,” the company noted in a statement today.

“Token has grown from an idea formed in the basement of Stanford into a commercially viable, leading fintech poised to change financial services forever,” founder and now-former CEO Steve Kirsch said. Kirsch, who introduced the company to fintech audiences at FinovateSpring in 2015, will assume the role of Chief Innovation Officer and focus on developing Token’s product roadmap. Featured prominently on that map is the company’s digital money business, including its digital currency for banks, Token X.

“Open banking is a huge opportunity for banks and fintechs across the world and Token has delivered a product with solid market fit,” Kirsch said.

New Token CEO Todd Clyde

With more than 30 years of experience in the enterprise and financial software business – including 12 years at Accenture – Clyde was responsible for all of Token’s commercial and financial operations during his three-year tenure as the company’s COO. In his new role as CEO, Clyde will drive the company’s open banking business worldwide, and build on a year that has seen Token forge partnerships with institutions like TurkishBank UK, Estonia’s Tallinn Business Bank, Sberbank Croatia, Omnio Group, Khaleeji Commercial Bank of Bahrain, and U.K. challenger bank Tandem.

“Open banking is already enabling the next generation of digital financial services,” Clyde said. “It’s one of the biggest disruptions to hit the payments and banking industries in decades.” He praised Token for “providing the infrastructure to power these services, at this crucial time.”

With more than 4,000 connected banks, Token offers financial institutions a single API and Smart Token technology that provides an easy route to PSD2 compliance, as well as a way to make multi-banking available to their customers. Merchants can leverage Token’s technology to connect directly to customer bank accounts, enabling direct payments and lowering costs.

Clyde is the second big C-level change for Token in 2019. The company began the year by hiring 15-year technology and payments veteran Gaurav Kohli as its new Chief Technology Officer. Kohli was previously VP of Product Development, Architecture, and Platform Engineering at Visa where he oversaw merchant and acquirer processing.

This summer, Token was honored at the second annual PayTech Awards, taking home the top prize for Best Consumer Payments Initiative. In March, the company announced a collaboration with Konsentus to launch a fast PSD2 compliance solution that combines a PSD2 API with automated third party provider verification.

Token has raised $32 million in funding – including more than $16 million raised in June in a round led by Opera Tech Ventures. Founded in 2015 and based in San Francisco, California, the company made its most recent Finovate appearance at FinovateEurope 2017.

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Finovate Alumni News

By David Penn Posted on
Categories: Avaloq, Azimo, BeSmartee, DefenseStorm, Fiserv, Hip Pocket, Kony, Kony Solutions, Marqeta, PayActiv, SparkPost, Tink, Token

On Finovate.com

  • Trends at FinovateFall: The Big, the Small, and the Surprises
  • DefenseStorm Launches New Fraud Monitoring Solution
  • From Start-up to Scale-up: Token Introduces New CEO Todd Clyde
  • Temenos Buys Kony to Boost its Front Office Technology for Banks

Around the web

  • PayActiv partners with Fiserv to streamline access to earned wages.
  • ABN Amro teams up with open banking solution provider Tink to bring multi-banking functionality to the bank’s Grip app.
  • Avaloq appoints Imad Abou Haidar as its new Head of Asia.
  • BeSmartee launches its new Mortgage Loan Officer (MLO) Command Center for loan originators.
  • Marqeta to create 175 new jobs in 2019, growing its workforce beyond 400 people.
  • SparkPost unveils new SparkPost Recipient Validation service, a sender reputation protection service that helps eliminate harmful bounces.
  • Azimo’s Richard Ambrose moves from COO to CEO, replacing Michael Kent.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alumni News

By Julie Muhn (@julieschicktanz) Posted on
Categories: Bambu, Blockchain, Featurespace, FIS, IDology, Lendio, Onfido, Revolut, Token, WorldPay

On Finovate.com

  • Onfido Unveils International Partner Program.
  • Pepper Power: HSBC Brings Robot Retail Banking to FinovateFall.

Around the web

  • Blockchain launches The PIT, an institutional-grade crypto trading platform.
  • IDology appoints Christina Luttrell as COO.
  • Featurespace delivers ARIC Fraud Hub with banking, payments, and processing solution provider Contis.
  • FIS closes acquisition of Worldpay.
  • TurkishBank teams up with Token to ensure PSD2 compliance.
  • Revolut hires former Metro Bank finance director David Maclean as its new Chief Financial Officer.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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Finovate Alums Honored at PayTech Awards 2019

Finovate Alums Honored at PayTech Awards 2019
By David Penn Posted on
Categories: ACI Worldwide, Award winners, Emailage, Fiserv, Green Dot, HooYu, Sberbank, Token

A handful of Finovate alums were among those earning top honors at the second annual PayTech Awards earlier this month. In categories ranging from e-commerce to real-time payments, four Finovate alums won commendations for their contributions to “excellence and innovation in the payments industry.” Another trio of alums took home “Highly Commended” runner’s up recognition.

We’ve listed those honored alums below along with the categories they competed in and a link to their most recent Finovate/FinDEVr conference demo video.

  • Token – Best Consumer Payments Initiative – video

And here are the alums that earned Highly Commended recognitions.

  • Fiserv – Real-Time Payments Solution Provider – video

The PayTech Awards consists of three categories: Judged Awards, Leadership Awards, and Ovum Payments Innovation Awards. In addition to those alums that won their categories – or earned Highly Commended honors – a few Finovate/FinDEVr alums were also short-listed ahead of the final votes. These companies – along with their category and most recent Finovate/FinDEVr video – are below:

To learn more about the awards – including a look at last year’s winners – visit the PayTech Awards homepage.

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Finovate Alumni News

By David Penn Posted on
Categories: Currency Cloud, Lending Club, LoanScorecard, nCino, Onfido, Token, Trusted Key, Trusted Knight

On Finovate.com

  • Workday Buys Blockchain-Based Identity Management Innovator Trusted Key.
  • nCino Acquires Analytics and Insights Specialist Visible Equity.

Around the web

  • Token.io announces partnership with U.K. property marketplaces StuRents and Mashroom.
  • Identity verification specialist Onfido partners with international payments provider Currencies Direct.
  • NewFi Wholesale implements LoanScoreCard’s automated underwriting system Portfolio Underwriter.
  • Apply Financial, Currencycloud collaborate to simplify cross-border payments.
  • Lending Club offers Levered Certificates backed by over $100 million in loans on its marketplace.

This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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