Open banking platform Token has raised $40m (£32.8m) in a Series C funding round co-led by Cota Capital and TempoCap.
Headquartered in London, Token is using open banking technology to shift from card-based payments to bank payments, with the goal of reducing costs. The company said it will use the new funds to expand its open banking platform across Europe.
Token provides open payment and data connectivity in Europe through an API and interface. Its technology is used by the likes of HSBC, Mastercard and Volt.
In 2018, Token made the first end-to-end payment through a public bank API.
“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,” said Todd Clyde, CEO, Token.io.
Additional investment came from Element Ventures, MissionOG, and PostFinance, with existing investors Octopus Ventures, Opera Tech Ventures and SBI Investment providing further funds.
“Token’s A2A payments offering delivers faster and more secure payments than traditional methods while at a lower cost. Token’s technology is enabling an impressive set of payment providers to offer seamless experiences for their merchant customers and, in turn, end users,” said Adam Shepherd, investment partner, TempoCap.
Founded in 2015, Token has offices in London, San Francisco and Berlin.
The latest round follows on from Token’s Series B round in January 2021 for $15m (£12.2m).
According to Dealroom data, Token has secured $90m (£73m) in funding to date and the company is valued at $160-240m (£131-196m).