Leading Open Banking platform provider Token.io Limited has made history by becoming the first licensed Payment Initiation Service Provider (PISP) to conduct an end-to-end payment through a public bank API.
As a result, millions of customers are set to benefit from simpler and more secure payments, through this historic move in the world of banking.
Confirmed as the first of its kind by UK Open Banking (the Open Banking Implementation Entity), a payment of £4.99 was made at 18:39 on Friday 1st June 2018, via the Token network using Santander’s API payment initiation endpoints.
Speaking on the huge leap by the organisation, Token co-founder, Marten Nelson explained that the token paid would be the start of billions of other payments to be made.
“This was one small payment for a PISP, one giant leap for the world of banking, billions of payments will follow. Ours was the first,” Nelson said.
According to news sources, with the infrastructure up and running, banks, merchants and other providers of payment and data services can now leverage open banking to reduce costs, generate new revenues, increase security and deliver a simpler, more convenient digital payment experience for the end user.
Less than one month earlier, Token.io Limited was granted authorization by the Financial Conduct Authority (FCA) to deliver payment initiation and account information services, under the terms of PSD2.
Via its universal open API banking platform, Token enables banks, merchants and other third-party providers (TPPs) to connect to any bank in the EU for payments and account information requests, thereby solving the integration pain being felt across the industry caused by multiple, proprietary bank-APIs.
Source – Finextra