HSBC makes a strategic investment in Token.io
In a significant move to bolster the adoption of Pay by Bank, HSBC has announced its strategic investment in London-based fintech company, Token.io. This partnership is set to revolutionise the way Europeans make digital payments, with analysts predicting that by 2029, three in four Europeans will regularly use Pay by Bank.
Pay by Bank, underpinned by Open Banking and real-time payment infrastructure, offers a secure, fast, and convenient option for peer-to-peer payments, account deposits, and loan repayments. Users pay directly from their bank accounts, quickly and securely authenticating transactions using their banking app with Pay by Bank.
Manish Kohli, the head of global payments solutions at HSBC, expressed trust and confidence in Token.io's team and technology. Kohli, who is also responsible for HSBC's digital payments strategy, believes that this investment will advance the shared vision of making Pay by Bank a mainstream payment method.
Todd Clyde, CEO of Token.io, commented on deepening the partnership with HSBC. The collaboration between the two companies dates back to 2019, when Token.io began powering HSBC's Open Payments solution. Clyde expressed his excitement about the investment, stating that it will accelerate Token.io's growth and innovation.
The mobile payments market in Europe is projected to grow from USD 136.45 billion in 2025 to USD 476.25 billion by 2030, at a CAGR of 28.41%. Given that Pay by Bank is included in the broader mobile payment ecosystem and supported by EU instant payment regulations, it is reasonable to infer significant growth.
Analysts predict that by 2029, European's use of Pay by Bank for e-commerce will eclipse all other digital payment methods, second only to wallets. By 2030, nearly anyone with a bank account in the UK and Europe can currently use Pay by Bank thanks to Token.io's solutions.
The investment marks an important milestone for Token.io, which specializes in account-to-account (A2A) payment infrastructure. The company has secured additional funding from an overwhelming majority of its existing investors, indicating their support for this significant industry development.
HSBC's customers across the region are expected to benefit from the benefits of this investment. A video titled "In Focus - Pay by Bank: Unlocking new use cases with Token.io, featuring Ecommpay and The Money Platform" is available to watch, providing insights into the potential of Pay by Bank and its impact on the digital payments landscape.
While the exact growth of Pay by Bank volumes or market size by 2029-2030 remains to be seen, the rapid growth in remote mobile and account-to-account payment channels supported by EU regulations and infrastructure upgrades suggests a robust outlook for Pay by Bank adoption in Europe.
- HSBC's strategic investment in fintech company, Token.io, is aimed at fostering the widespread use of Pay by Bank, a digital payment method underpinned by Open Banking and real-time payment infrastructure.
- Manish Kohli, head of global payments solutions at HSBC, believes that this partnership with Token.io will propel Pay by Bank into mainstream use, contributing to its predicted growth.
- In collaboration with Token.io, HSBC has already been utilizing its technology to power its Open Payments solution since 2019, and this investment is expected to accelerate innovation in the fintech sector.
- The mobile payments market in Europe is projected to see significant growth, with Pay by Bank's inclusion in the broader mobile payment ecosystem supported by EU instant payment regulations.
- By 2029, analysts predict that European consumers will overwhelmingly adopt Pay by Bank for e-commerce, making it the second most popular method behind wallets.
- The benefits of this investment in Pay by Bank are expected to extend to HSBC's customers across the region, with potential growth shown in remote mobile and account-to-account payment channels.
