The move extends a collaboration in which Token.io has powered the HSBC Open Payments solution since 2019, the companies said in a Wednesday (June 4) press release.
Token.io also secured additional funding from most of its existing investors, according to the release.
“This investment will not only accelerate Token.io’s growth and innovation, it will also advance our shared vision of making pay by bank a mainstream payment method — delivering benefits for HSBC’s customers across the region,” Token.io CEO Todd Clyde said in the release.
HSBC’s Open Payments solution helps customers initiate direct bank payments from third-party platforms, according to the release.
The bank is expanding its adoption of Token.io’s infrastructure to also offer its clients a pay-by-bank option for peer-to-peer payments, account deposits and loan repayments, per the release.
“Our investment in Token.io reflects the trust and confidence we have in their team and technology, and our firm belief in the role that innovative open banking solutions play in transforming the payments experience for both corporates and consumers,” Manish Kohli, head of global payments solutions at HSBC, said in the release.
Token.io raised $40 million in a Series C funding round in May 2022, saying it would use the capital to continue advancing the shift from traditional payment methods like cards and wallets to open banking account-to-account payments.
The company said at the time that it was launched in 2016 and aimed to help merchants, payment service providers and banks create new capabilities and revenue streams.
The PYMNTS Intelligence report “Can Banks and FinTechs Bridge the Divide to an Open Banking Future?” found that 84% of users report high satisfaction with their account-to-account platforms.
The report found that the benefits of open banking include an enhanced customer experience, increased competition and innovation, and improved financial management.
In another, separate development in the space, account-to-account payments provider Trustly said in April that it launched a partnership with French FinTech Paytweak.
In September, open banking platform Tarabut acquired British account-to-account business payments platform Vyne.
