24 April 2017 – Token, Inc., a turnkey open banking platform provider that enables banks to generate revenue from PSD2, today announced $15.7 million in Series A funding from major investors including Octopus Ventures, EQT Ventures and OP Financial Group.
From January 2018, the European Payment Services Directive, PSD2, 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. Token’s open banking platform helps banks quickly and cost effectively meet these compliance requirements while also creating opportunities to generate new revenues. In addition to being a 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.
Founded in 2015 by serial Silicon Valley entrepreneur Steve Kirsch (FrameMaker, acquired by Adobe Systems and Infoseek, acquired by the Walt Disney Company) and former Global Chief Technology Officer of Citigroup, Yobie Benjamin, Token has since grown rapidly, opening a European office in London in July 2016. Since inception, Token has also made a series of high-profile appointments, including COO, Todd Clyde, a senior executive with four consecutive successful exits from financial services technology and enterprise software companies. The company has also announced strategic partnerships with Fidor Bank and OP Bank, both known for their innovation in financial services.
The lead investor in the Series A is one of Europe’s largest venture capital teams, UK-based Octopus Ventures, which has backed a number of successful fintech businesses. Simon Andrews of Octopus Ventures, commented: “At Octopus we focus on backing unusually talented entrepreneurs and Token, headed up by serial entrepreneur Steve Kirsch, was a perfect fit for us. Token is proving that programmable money can transform the way the world transacts. We are looking forward to supporting Steve and the team in the next phase of growth and look forward to seeing the organisation develop from here on.”
Joining the round was Stockholm-based EQT Ventures, part of alternative investments firm EQT which has an impressive track record of over 170 investments and 84 exits. Andreas Thorstensson, Technology Partner at EQT Ventures and Board Member for Token, said: “Token is offering a true game changer in the world of banking and financial services. Through a secure API, they are creating an open banking ecosystem, which creates possibilities for new revenue streams for its customers and a better user experience for consumers. This also helps the banks become compliant with the new PSD2 regulation. We couldn’t be happier supporting Steve and his fantastic team on this journey.”
Additional investors include OP Financial Group, the first financial services provider in Europe to offer online banking services, Plug And Play Ventures and Digital Currency Group.
Steve Kirsch, CEO and founder of Token, commented: “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.”