Token, a San Francisco and London-based open banking platform, raised $16.5m in funding from prominent tech funds including Opera Tech Ventures, the venture arm of BNP Paribas, Octopus Ventures, and EQT Ventures, according to an announcement Tuesday.
This strategic round of funding comes on the heels of the company’s partnership with Mastercard. Token is working to develop a connectivity layer for the legacy payments processor’s open banking hub “that will help third parties establish and maintain communication with banks for data and/or payment,” said Token representative Erin Lovett. The partnership represents “the first movement in open banking by a large infrastructure provider.”
Combining open APIs, cryptographic security features, and programmable money to develop new banking applications, the company said it assists banks aggregate client account information from multiple external sources, initiate bank-direct payments, and reduce the cost of payment acceptance.
An API also provides compliance with PSD2 obligations, a regulatory directive in the EU.