24 April 2017 – Token, Inc., aturnkey open banking platform provider that enables banks to generate revenuefrom PSD2, today announced $15.7million in Series A fundingfrom major investors including Octopus Ventures, EQT Ventures and OP FinancialGroup.
From January 2018, the EuropeanPayment Services Directive, PSD2, will require banks to grant account access toa variety of customer-permitted third party service providers for the purposeof payment initiation and retrieving information. Token’s open banking platformhelps banks quickly and cost effectively meet these compliance requirementswhile also creating opportunities to generate new revenues. In addition tobeing a turnkey PSD2 compliance solution, Token also offers programmable moneycapabilities, empowering banks to create revenue from a number of high-valuebusiness cases including e-commerce checkout, B2B payments, bill pay, and manymore.
Founded in 2015 by serial SiliconValley entrepreneur Steve Kirsch (FrameMaker, acquired by Adobe Systems andInfoseek, acquired by the Walt Disney Company) and former Global ChiefTechnology Officer of Citigroup, Yobie Benjamin, Token has since grown rapidly,opening a European office in London in July 2016. Since inception, Token hasalso made a series of high-profile appointments, including COO, Todd Clyde, asenior executive with four consecutive successful exits from financial servicestechnology and enterprise software companies. The company has also announcedstrategic partnerships with Fidor Bank and OP Bank, both known for theirinnovation in financial services.
The lead investor in the Series Ais one of Europe’s largest venture capital teams, UK-based Octopus Ventures,which has backed a number of successful fintech businesses. Simon Andrews ofOctopus Ventures, commented: “At Octopus we focus on backing unusually talentedentrepreneurs and Token, headed up by serial entrepreneur Steve Kirsch, was aperfect fit for us. Token is proving that programmable money can transform theway the world transacts. We are looking forward to supporting Steve and theteam in the next phase of growth and look forward to seeing the organisationdevelop from here on.”
Joining the round wasStockholm-based EQT Ventures, part of alternativeinvestments firm EQT which has an impressive track record of over 170 investmentsand 84 exits. AndreasThorstensson, Technology Partner at EQT Ventures and Board Member for Token,said: “Token is offering a true game changer in the world of banking andfinancial services. Through a secure API, they are creating an open bankingecosystem, which creates possibilities for new revenue streams for itscustomers and a better user experience for consumers. This also helps the banksbecome compliant with the new PSD2 regulation. We couldn’t be happiersupporting Steve and his fantastic team on this journey.”
Additional investors include OPFinancial Group, the first financial services provider in Europe to offeronline banking services, Plug And Play Ventures and Digital Currency Group.
Steve Kirsch, CEO and founder ofToken, commented: “Securing the backing from such world-class investors allowsus to grow and execute faster on our mission to reinvent the world’s paymentsystems by providing common, secure access to all banks and a modern,bank-centric payment ecosystem. Each firm shares our excitement about thefuture of open banking and fully appreciates the impact that programmable moneywill have on the future of digital transactions.”
Meet Token at EBAday in Dublin,June 20-21 and Money2020 in Copenhagen, June 26-28. To learn more about Token,please visit www.token.io.