Token raises $18.5m to help banks meet PSD2 compliance

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Token, which provides an open banking platform to help banks meet PSD2 compliance requirements, has closed its Series A round at $18.5m.

The round of funding was led by European venture capital firm Octopus Ventures, with participation from EQT Ventures, OP Financial Group, Plug And Play Ventures and Digital Currency Group.

Token claims to enable banks to ‘quickly and cost effectively’ meet PSD2 compliance requirements while also creating opportunities to generate new revenues.

In addition to its turnkey PSD2 compliance solution, Token also offers programmable money capabilities, empowering banks to create revenue from a number of high-value business cases including e-commerce checkout, B2B payments, bill pay, and many more.

The new round of capital comes just a few months before the European Payment Services Directive(PSD2) comes into effect in January 2018. The new regulation will require banks to grant account access to a variety of customer-permitted third-party service providers for the purpose of payment initiation and retrieving information.

Steve Kirsch, CEO and founder of Token, said: “Securing the backing from such world-class investors allows us to grow and execute faster on our mission to reinvent the world’s payment systems by providing common, secure access to all banks and a modern, bank-centric payment ecosystem.

“Each firm shares our excitement about the future of open banking and fully appreciates the impact that programmable money will have on the future of digital transactions.”

Kirsch, a serial Silicon Valley entrepreneur, co-founded Token in 2015. He previously founded FrameMaker, which was acquired by Adobe Systems and Infoseek, which was acquired by the Walt Disney Company. Kirsch launched Token with Yobie Benjamin, the former global CTO of Citigroup.

Token opened a European office in London in July 2016 and has also announced strategic partnerships with Fidor Bank and OP Bank.

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