The announcement was made during the Money20/20 Europe event. The investment follows a multi-year collaboration in which Token.io's infrastructure has supported HSBC's Open Payments solution $HSBA (+1,45%) which enables users to make direct payments from their bank accounts via third-party platforms.
The move signals HSBC's intention to expand the use of Token.io's technology, particularly in the launch of applications for pay by bank services.
According to HSBC, the decision to invest in Token.io reflects its confidence in the company's underlying technology and the broader potential of open banking to modernize payments for both consumers and businesses. Token.io's platform is based on real-time payment networks and open banking frameworks that enable direct bank transfers without cards or intermediaries.
A Token.io representative noted that the investment will help accelerate the company's work to expand access to pay by bank services. These services allow users to authenticate payments through their banking apps and offer an alternative to traditional card-based transactions. Use cases include peer-to-peer payments, loan repayments and account deposits.
Token.io's platform currently supports pay by bank functionality across much of the UK and Europe. According to Token, which cites forecasts from industry analysts, around 75% of Europeans will be using this method regularly by 2029. The volume of payments via Pay by Bank is forecast to increase by 30% in 2025 alone. The use of A2A payments in e-commerce is also expected to increase significantly, ranking just behind digital wallets by 2030.