Open Banking payments are going from strength to strength in the UK and Europe as use cases continue to expand, with Open Banking platform Token.io at the heart of developments.
In the UK, the Open Banking Implementation Entity (OBIE) recorded a 210% growth in Open Banking payments between April 2021 and April 2022, with Token driving over 20% of this traffic. By the end of 2021, the cumulative total for Open Banking payments volume stood at 26.6 million – an increase of more than 500% in 12 months.
Whilst the UK is an Open Banking pioneer, Europe is now keeping pace. Juniper has predicted that Open Banking payments will exceed $116 billion by 2026 – a 2800% increase in five years – with Europe set to account for 75% of this total as Open Banking payments become a key driver of e-commerce growth.
Against this backdrop, Token has emerged as the clear market leader, enabling the growth of faster, fairer, frictionless Open Banking-enabled account-to-account (A2A) payments across the UK and Europe.
Following its latest $40 million funding round, Token is further expanding its connectivity network while recruiting additional talent to accelerate the development of its capabilities. In April 2022, the company boosted its executive team with the addition of Chief Product Officer (CPO) Charles Damen (ex-Worldpay, Thunes, Bumble/Badoo) and Chief Technology Officer (CTO) Artashes Torosyan (ex-Optio Pay).
Todd Clyde, CEO, Token, said: “We’re seeing a huge, and growing, appetite for A2A payments across the UK and Europe, with the market recognising they represent the future – fast, fair and frictionless.”
“As A2A payments increase, the use of traditional payment methods, such as cards, is set to decline. FIS WorldPay’s 2022 Global Payments Report, for example, predicts that by 2025 cards will account for less than a third of global e-commerce transaction value.”
“Our laser-sharp focus on payments has enabled us to develop deep functionality that makes accepting direct A2A payments elegant and simple. We’ve adopted an approach that empowers other players in the payment value chain to bring A2A payments, and the benefits associated with them, to their customers. We’re now processing tens of millions of open payments annually for the UK and Europe’s payment service providers (PSPs), gateways, banks and large merchants.”
With Token’s complete Open Banking toolkit, businesses can create new capabilities and revenue streams, blending API-based payments and data to reinvent financial experiences faster and more efficiently.