HSBC is increasing its stake in Token.io to further develop token.io’s
pay-by-bank capabilities. the financial details of the investment were
not disclosed.

The partnership between HSBC adn Token.io has been ongoing since 2019,with
Token.io powering the HSBC Open Payments solution. Token.io has also
received additional funding from its existing investors.

According to Token.io CEO todd Clyde, “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.”

HSBC’s Open Payments solution enables customers to initiate direct bank
payments from various third-party platforms. The bank plans to expand its
use of Token.io’s infrastructure to provide clients with pay-by-bank
options for peer-to-peer payments, account deposits, and loan repayments.

Manish Kohli, head of global payments solutions at HSBC, stated, “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.”

Open Banking Developments

In May 2022, token.io secured $40 million in a Series C funding round,
earmarking the funds to promote the adoption of open banking
account-to-account payments over traditional methods like cards and wallets.
Token.io, launched in 2016, aims to enable merchants, payment service
providers, and banks to create new functionalities and revenue streams.

“Our investment in Token.io reflects the trust and confidence we have in
their team and technology…”

A recent study found high user satisfaction with account-to-account
platforms, with 84% of users reporting positive experiences. Open banking
offers benefits such as improved customer experience, increased competition
and innovation, and better financial management.

In other news, Trustly partnered with French FinTech Paytweak in April to
offer account-to-account payment solutions. Additionally, Tarabut acquired
British account-to-account business payments platform Vyne in September.