European fintech firm Token.io has announced that HSBC has become a strategic investor, further strengthening the two companies’ ongoing partnership and shared focus on enhancing payment solutions.
Revealed during Money2020 Europe, the investment represents a notable step forward for Token.io, which provides account-to-account (A2A) payment infrastructure.
Token.io has worked with HSBC since 2019 to support its HSBC Open Payments platform.
Todd Clyde, CEO of Token.io, said:
“We are excited to deepen our partnership with HSBC as we embark on this collaboration. 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.”
Manish Kohli, Head of Global Payments Solutions at HSBC, said:
“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.”
HSBC’s Open Payments offering allows customers to initiate direct bank payments from third-party platforms with speed and security.
The bank is now expanding its use of Token.io’s infrastructure to support a broader rollout of Pay by Bank services, which include peer-to-peer payments, account deposits, and loan repayments.
Built on open banking and real-time payment systems, Pay by Bank aims to reduce the cost and complexity of processing payments.
Transactions are completed directly from users’ bank accounts, authenticated securely via banking apps.
Token.io’s current infrastructure enables most individuals with bank accounts in the UK and Europe to access this payment method.
Industry analysts estimate that 75% of Europeans will regularly use Pay by Bank by 2029.
Payment volumes are expected to grow by 30% in 2025, with e-commerce adoption of the method likely to surpass most other digital options by 2030, second only to digital wallets.
Token.io has also secured additional investment from the majority of its existing backers, indicating continued support for the company’s development within the sector.
Featured image credit: Edited by Fintech News Switzerland, based on image by user850788 via Freepik
