Germany’s Fidor Bank is to integrate software from Silicon Valley-based Token into its banking-as-a-service middleware layer, providing an API-based ecosystem designed to help banks monetise their investment in the revised EU payment services directive, PSD2.
Token says the MoU with Fidor will provide a turnkey solution for licensees of the German bank’s OS middleware platform, providing a shortcut to cryptographically executing PSD2-compliant digital transactions.
Steve Kirsch, founder and CEO of Token says: “Banks will be able to tap into a comprehensive and fully operational API banking infrastructure complete with the transformative attributes offered by programmable money. In the short-term our platform can be used as a springboard to generate revenues from PSD2 and XS2A. In the longer term, it can be applied to enhance the security, speed, cost and efficiency of a massive range of transaction-based banking functions which currently rely on traditional legacy processes, from bill pay, to e-commerce checkouts, international money transfers, B2B payments, intra-bank transfers and more.”
Token, which claims to have raised “millions of dollars” from Google, Facebook and Tesla executives, together with VCs PlugAndPlay Ventures and Digital Currency Group, opened an office in Canary Wharf in August in an effort to capitalise on opportunities from the forthcoming implementation of the PSD2 directive in Europe.
The company says that multiple trials and POCs are already underway with banks, and views the deal with Fidor as a another way to open the door to startups and smaller banks looking to gain an edge in the changing payments landscape.
Matthias Kröner, CEO, Fidor, comments. “Like Token, our OS is modern, modular, open, API-based and free of legacy code. This enables banks to use our suite of technologies to tailor their digital infrastructure to the precise needs of their customers. Adding Token to the mix simply extends the power and control we give to banks in the digital age.”