European open banking PayTech nets $40m

Open banking payments platform has scored $40m in its Series C funding round, as it looks to boost the shift to open banking.

Cota Capital and TempoCap co-led the round, with commitments also coming from Element Ventures, MissionOG and PostFinance. Existing investors Octopus Ventures, Opera Tech Ventures and SBI Investment, also joined the round.

Funding will be used to support the transition from traditional payment methods like cards and wallets to open banking-enabled account-to-account payments. It hopes to this by differentiating its purpose-built platform for existing payment providers and expanding open banking connectivity across Europe.

Token plans to enhance its application programming interfaces for variable recurring payments and open finance functionality.

Founded in 2016, the company offers open payment and data connectivity in Europe, spanning 16 EU countries. It claims to process tens of millions of open payments each year for over 80% service providers, gateways, banks and large merchants. CEO Todd Clyde said, “In the next four years, the global value of open banking payments is expected to exceed $116bn, with Europe accounting for 75% of all transactions

“Europe has become a world leader in open banking, open finance and real-time payments, and Token holds a unique position in the marketplace. 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.” customers include BNP Paribas, HSBC, Mastercard, Nuvei, Paysafe, Ecommpay, Rewire, Coingate, Sonae Universo, Volt and Vyne.

Torch Partners advised on the financing.

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