HSBC backs Token.io to scale Pay by Bank across Europe

By Gloria Methri

Token.io, the European FinTech specialising in account-to-account (A2A) payment infrastructure, has announced a strategic investment from HSBC.  The announcement, made at Money20/20 Europe, solidifies a partnership that began in 2019, when Token.io first began powering HSBC’s Open Payments solution. It enabled customers to initiate direct bank payments securely via third-party platforms.

“We are excited to deepen our partnership with HSBC as we embark on this collaboration,” said Todd Clyde, CEO of Token.io. “This investment will not only accelerate Token.io’s growth and innovation, but 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.”

The partnership comes at a time of rapid growth in A2A payments. Token.io’s technology enables real-time, bank-direct transactions authenticated through users’ banking apps. This enables faster and more secure payments without the need for cards, while also reducing transaction costs for both merchants and financial institutions.

“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,” said Manish Kohli, Head of Global Payments Solutions at HSBC.

In addition to powering HSBC’s Open Payments solution, Token.io’s infrastructure is now being adopted more broadly across the bank’s payment offerings. This includes peer-to-peer transfers, account top-ups, and loan repayments via Pay by Bank — a service built on open banking rails and real-time payment systems.

Industry forecasts highlight the growing momentum behind this payment method. Analysts predict that by 2029, three in four Europeans will use Pay by Bank regularly, with transaction volumes expected to rise by 30% this year alone. By the end of the decade, Pay by Bank is projected to become Europe’s second most widely used digital payment method, after digital wallets, in the eCommerce space.

The investment from HSBC is part of a wider funding round, which also saw renewed support from a majority of Token.io’s existing investors, reinforcing confidence in the firm’s vision and market leadership.

With this strategic backing, Token.io is looking to scale its platform, extend its reach, and accelerate the shift towards frictionless, real-time payments across Europe and beyond.