Why we invested - Token
Why we invested in Token
The payments landscape has undergone significant changes in the last five years due to regulatory shifts and a transition to digital payments. At HSBC, we are dedicated to embracing the latest trends to enhance our customer service. We are therefore thrilled to announce our recent investment in Token.io, a company specialising in A2A payments infrastructure.
Solving tomorrow’s payment challenges today
Traditional payment systems have underpinned global commerce for decades. However, as the digital economy evolves, there is growing demand for faster, more flexible and cost-effective solutions. Today’s card-based infrastructure is being enhanced by innovations that reduce friction and improve the user experience. Token.io enables seamless, real-time bank-to-bank payments through open banking – simplifying processes like instant payments, recurring transactions and virtual account management through API based solutions.
Token.io operates in the fast-growing open banking and A2A payments market, which is being transformed by regulatory changes such as PSD2, and an increasing demand for real-time, cost-efficient payments. Recent research by Jupiter Research, revealed how the global real-time payments market—largely driven by A2A transactions—is expected to grow from $17.1 trillion in 2024 to $58.7 trillion by 2029. In the UK alone, open banking payments are growing at 70% annually, expected to rise from $27 billion in 2022 to $334 billion by 2027. By partnering with innovators like Token.io that are already positioned in this ecosystem, we are accelerating payment transformation and successfully shaping the future of modern global payments systems.
Partnering to power open banking
We believe that staying competitive in today’s financial environment requires bold partnerships and forward-thinking innovation. Our investment and partnership with Token.io reflect our commitment to embracing digital innovation and staying ahead of the curve.
HSBC leverages Token.io’s open banking infrastructure to enhance our HSBC Open Payments service, allowing customers to pay retailers directly from their bank accounts. Major UK merchants depend on this service to improve payment success rates and reduce acceptance costs. Together, Token.io and HSBC UK are revolutionising online retail payments and challenging traditional methods. Their successful partnership was recognised with the Banking Tech Award for Best Bank & Fintech Partnership.
Investing in the future of payments
Our investment in Token represents a strategic move towards the future of banking and payments. It is an important step in shaping a financial system that’s faster, safer, and more transparent. Token’s cutting-edge service, combined with our infrastructure and global presence, creates a powerful synergy that can unlock significant value for customers worldwide.
Manish Kohli, Head of Global Payments Solutions at HSBC, comments: “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.”
As the financial ecosystem continues to evolve, partnerships like this will play a key role in driving progress. We are excited to join forces with Token to reimagine payments, accelerate financial inclusion, and deliver smarter, real-time solutions. Together, we’re building a future where payments are instant, secure, and truly open.