Token raises $15.7 million to help banks comply with EU policies

Fintech startup Token has announced a Series A round of $15.7 million for its banking platform that helps financial services stay in line with EU regulations.

The funding round comes from Stockholm’s EQT Ventures, London’s Octopus Ventures, and Helsinki’s OP Financial Group.

Token is headquartered in San Francisco, with a London office, and was founded by Steve Kirsch, Yobie Benjamin, and Marten Nelson.

From January 2018, the EU’s Payment Services Directive, or PSD2, will require banks and financial services to open up data to approved third parties to improve services. According to Token, its APIs are used to secure this data by issuing payment and account data as a smart token where the original data never leaves the bank’s network.

PSD2 presents a big opportunity for Token, according to the company.

“Securing the backing from such world-class investors allows us to grow and execute faster on our mission to reinvent the world’s payment systems by providing common, secure access to all banks and a modern, bank-centric payment ecosystem,” said CEO Steve Kirsch. “Each firm shares our excitement about the future of open banking and fully appreciates the impact that programmable money will have on the future of digital transactions.”

“Token is offering a true game changer in the world of banking and financial services. Through a secure API, they are creating an open banking ecosystem, which creates possibilities for new revenue streams for its customers and a better user experience for consumers,” added Andreas Thorstensson, technology partner at EQT Ventures and Token board member.