Open banking API developer Tink has received an investment from online payments giant PayPal.
The value of the transaction was not disclosed. Funds from the investment will be used to support Tink’s expansion across Europe and extending the reach of its open banking services, as well as build the next generation of financial services, it said.
Alongside the investment, PayPal has also become a customer of Tink to gain access to the account aggregation technology stack. Through this it hopes to improve the produce experiences offered to European customers, with plans to expand this to other regions in the future.
PayPal VP of global markets and partnerships Jennifer Marriner said, “Open banking is transforming financial services, allowing customers to more easily move and manage their money. Tink has developed the infrastructure and data services for this new financial world – and we’re excited to work together to continue to democratise financial services.”
The payments giant has been very active in funding FinTechs, having recently supplied Series A capital to digital identity enterprise Cambridge Blockchain.
Sweden-based Tink builds a range of cloud-based, open banking APIs which cover account aggregation, payment initiation, data enrichment and personal finance management.
Earlier in the year, Danish challenger bank Lunar Way selected the Tink API to add new payments and personal finance tools to its mobile banking app. Tink enables Lunar Way to aggregate accounts, giving customers the ability to connect any bank account, including those for mortgages, investments and loans, into the banking app.
Another FinTech leveraging Tink for open banking is Mash, a provider of credit-lines and pay-later services for retailers. The startup recently implemented the Tink solution to boost its onboarding processes and improve financial insights for customers.
