HSBC Makes Strategic Investment in Token.io

HSBC Makes Strategic Investment in Token.io

HSBC Expands Partnership with Token.io for Pay by Bank Solutions

HSBC is broadening its adoption of Token.io's infrastructure for Pay by Bank, offering clients a secure, fast, and convenient option for peer-to-peer payments, account deposits, and loan repayments. This move is part of a strategic initiative to enhance digital payment services and meet the growing demand for account-to-account (A2A) transactions in Europe.

The partnership between HSBC and Token.io, which began in 2019, has been strengthened with this latest development. Todd Clyde, the CEO of Token.io, expressed his excitement about deepening the partnership with HSBC, while Manish Kohli, the head of global payments solutions at HSBC, expressed trust and confidence in Token.io's team and technology.

Token.io specializes in A2A payment infrastructure and has already enabled nearly anyone with a bank account in the UK and Europe to use Pay by Bank. The investment from HSBC aims to accelerate Token.io's growth and innovation, contributing to the expansion of the Pay by Bank ecosystem.

The European mobile and account-to-account payments market is experiencing rapid growth, with the market size projected to grow from approximately $136.45 billion in 2025 to $476.25 billion by 2030, representing a CAGR of 28.41%. The fastest-growing payment channel in Europe is remote mobile payments, expanding at a 31.35% CAGR, boosted by pay-by-bank innovations and eCommerce growth.

Regulatory mandates, such as the EU Instant Payments Regulation requiring sub-10-second euro account settlements by October 2025, are driving this growth. Token.io's technology facilitates instant payments and seamless user experiences, aligning with the EU’s regulatory push towards instant settlements and payee verification.

The investment from HSBC marks an important milestone for Token.io, reflecting the support of its existing investors and the industry's recognition of its strategic role in enabling account-to-account payment growth in Europe. By 2030, European's use of Pay by Bank for e-commerce is expected to eclipse all other digital payment methods, second only to wallets.

Pay by Bank, underpinned by Open Banking and real-time payment infrastructure, reduces the cost and complexity of payments and simplifies the customer experience. This development is expected to deliver benefits to HSBC's customers across the region and advance the shared vision of making Pay by Bank a mainstream payment method.

Aspect | Description --- | --- Market Size 2025 | $136.45 billion (Europe mobile payments market including Pay by Bank) Projected Market Size 2030 | $476.25 billion (CAGR 28.41%) Fastest Growth Channel | Remote mobile payments (31.35% CAGR) driven by pay-by-bank and tokenization Regulatory Drivers | EU Instant Payments Regulation (sub-10-second euro settlements by Oct 2025) Token.io Contribution | Provides secure open banking infrastructure and APIs for instant, tokenized pay-by-bank rails

This ecosystem is supported by accelerating investments, regulatory harmonization, and increasing consumer acceptance, making Pay by Bank a key growth vector in Europe's digital payments landscape.

For more insights into the Pay by Bank revolution, watch the featured video titled "In Focus - Pay by Bank: Unlocking new use cases with Token.io, featuring Ecommpay and The Money Platform."

[1] Source: Statista, PaymentsSource, and Token.io

This article was generated by a machine learning model and may require human review and editing for accuracy and clarity.

1. The rapid growth of the European mobile and account-to-account payments market, projected to reach $476.25 billion by 2030, is driven by innovations in pay-by-bank solutions like those provided by Token.io.
2. HSBC's investment in Token.io aims to accelerate the growth and innovation of the pay-by-bank ecosystem, contributing to the expansion of this market.
3. Regulatory mandates, such as the EU Instant Payments Regulation, are driving this growth by requiring sub-10-second euro account settlements.
4. Token.io's technology facilitates instant payments and seamless user experiences, aligning with the EU’s regulatory push towards instant settlements and payee verification.
5. The partnership between HSBC and Token.io has been strengthened, deepening collaboration in the fintech field, particularly in areas of finance, technology, and investing, to drive innovation in global payments.
6. By 2030, the use of Pay by Bank for e-commerce is expected to eclipse all other digital payment methods, second only to wallets, demonstrating its strategic role in enabling account-to-account payment growth in Europe.

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