Fully operational iOS app, integrated with Fidor Bank, reveals hidden bank revenue opportunities in the new Payment Services Directive (PSD2) and demos revolutionary API banking business model. European banks can now see first-hand how they can use PSD2 to generate massive revenues and dominate the market for digital transactions, Token says in a press release.
“Unlike other PSD2 solution providers, Token does not just offer compliance, it gives banks uncontested control over the post-PSD2 market for digital transactions,” comments Marten Nelson, co-founder, Token. “With Token, gone are today’s payment networks, clearing houses and other intermediaries that take a piece of the bank’s payment revenue. In their place, the bank launches its own Token digital transaction network, allowing it to set its own fees. Thanks to the new direct interface that Token enables, the bank can increase its margins, lower the costs of transacting for merchants, and introduce a fee structure for Account Information Service Providers and Payment Initiation Service Providers mandated by PSD2.
“This is a big change and it can be a lot to take in, so we’ve create a mobile app to help convey the power of the opportunity and enable banks to see first-hand how the system works. It also lets us demonstrate how fast and convenient the user experience is.
“Our app isn’t a first audition either; it’s more like a final dress rehearsal,” adds Nelson. “It uses the live Token network and has been fully integrated with Fidor OS. In short, we’re ready to deploy today and can do so in a fraction of the cost and time it would take a bank to manage themselves.”
Combining Token’s payment network with Fidor OS took a total of ten days, including testing. Customer account data is securely aggregated in a single place, and payments can be made from multiple sources instantly and securely from within a single environment.
“We are glad to unveil the availability of Token on Fidor’s open banking platform FidorOS at Finovate Europe, to support banks that use our platform to easily adopt future payment scenarios, such as the upcoming PSD2 standard,” comments Ge Drossaert, Member of the Board of Fidor. “The synergies between Token and Fidor’s technologies greatly strengthen banks’ role in the new payment landscape. Not only do they reinforce data and payment security in an open environment, they also pave the way for new revenue streams for banks that want to play a key role and strive to innovate.”
To show how an account information aggregator might pool customer data from multiple banks the app also includes a fictional link to Game of Thrones’ Iron Bank of Braavos. Imitation merchants and products have also been generated to enable users of the app to experience the full transaction flow.
Token combines smart tokenisation, public-key cryptography and APIs to provide the industry’s simplest and most secure transaction-based open banking platform. In practice, Banks use Token’s software to issue and redeem payment authorisations as smart tokens which can be programmed with any number of terms and conditions in accordance with the instructions of the account holder. This enables each smart token to be uniquely specified to the transaction it represents. They can also execute API callouts to external web services, enabling value added services to be integrated in just the same manner. Sensitive card or account data never leaves the Bank’s systems, masked or otherwise, vastly reducing the Bank’s security vulnerabilities.
By putting a bank in sole charge of their own digital payment network, Token eliminates the bank’s need to rely on partners to execute digital transactions and launch new services, making them immune to competitive encroachment and disintermediation. The bank’s brand remains front and centre at all times.
Founded in 2015, Token is a technology company headquartered in San Francisco with offices in London. Token’s open banking platform helps banks quickly and cost effectively meet the PSD2 compliance requirements and generate new revenue. It raises security and reduces disintermediation. Token has developed an open banking platform with rich functionality that allows banks to quickly and cost-effectively comply with PSD2 before the deadline. Unlike in-house developed solutions, Token supports the same API across all banks. Banks that use Token will have access to the most third-parties’ applications. This in turn means greater revenue for those banks.
„Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”