HSBC has made a strategic investment in UK‑based open‑banking platform Token.io, aiming to fast‑track the expansion of its “Pay by Bank” initiative across Europe. Token.io, which has powered HSBC’s Open Payments system since 2019, will now receive financial backing and joint development resources from the global bank to enable peer‑to‑peer payments, account transfers, and loan repayment services via bank‑to‑bank rails (pymnts.com).
HSBC’s investment meets growing demand from corporates and consumers for real‑time, lower‑cost payment alternatives. By bypassing traditional card networks, the bank can eliminate card interchange fees while offering faster transaction processing. Token.io CEO Todd Clyde emphasized that this partnership reflects “shared vision” to make bank‑to‑bank payments mainstream (pymnts.com). Meanwhile, Manish Kohli, Head of Global Payments at HSBC, highlighted the strategic importance of embedding open‑banking features into everyday customer journeys (linkedin.com).
For HSBC customers, this means access to more streamlined payment workflows—such as settling P2P transfers, salary deposits, and loan payments directly from bank accounts—without pulling cards or entering sensitive details. For Token.io, the deal brings both capital and access to one of Europe’s largest banking customer bases (fintechnews.ch).
Why It Matters:
- Reinforces trend of banks collaborating with fintechs for “embedded” banking solutions.
- Signals shift toward card-free payments by major financial institutions.
- Paves the way for faster, cheaper, and more secure payment rails across Europe.
