Turnkey open banking platform provider Token today announces that it is enabling Caxton FX to provide a bank direct payments facility to its consumer and business prepaid multi-currency card customers.
Caxton FX is an international expert in foreign exchange. Its multi-currency cards and international bank transfer services are used by 750,000 private and business customers, and in 2017 Caxton FX processed 7.3 million transactions and transferred more than €1 for every man, woman and child on the planet.
Integration with Token’s platform enables Caxton’s customers to load their prepaid multi-currency cards with funds directly from their bank accounts via Caxton’s mobile app, making the cardholder’s loading experience significantly faster and more convenient than before. In the process, both Caxton and its customers also benefit from dramatically reduced costs, instant payments and increased security.
Routing the customer payment via Token instead of using conventional debit card rails decreases the cost of payment acceptance by over 50% and enables instant processing. Previously, customer loaded funds could take up to three days to clear. This new settlement time frame is significant for Caxton as it improves cash flow management.
Marten Nelson, Co-founder and CMO, Token, comments: “When done right, open banking represents the biggest opportunity for banks and financial service providers in the last 50 years. Its real power lies in enabling new levels of customer-centric products and services. For Caxton FX, this begins by offering a refreshingly simple and convenient way for new customers to load their cards. For the wider industry, the possibilities are endless. Our partnership with Caxton reinforces our commitment to all players in the digital ecosystem; we exist to help them lower costs and deliver an amazing, market-differentiating experience to their customers, through a rich, yet simple integration.”
Rupert Lee-Browne, CEO, Caxton FX, adds: “We are delighted to be working with Token on this highly innovative solution to open banking. The team at Token have been great to work with and we are very excited to be rolling this particularly useful feature out to our customers.”
Token’s unique technology platform ensures that only a representation of the cardholder’s sensitive payment data is ever transmitted, in the form of a Smart Token. These tokens can be re-used without any security degradation, meaning that the requirement to manually approve every payment is negated from the loading process, increasing efficiency.
Caxton FX and Token are embarking on a phased roll out of Token’s payment service, which begins with consumer cardholder onboarding in Q3 2018. The ability to load cards directly from bank accounts will be made available to the thousands of customers who join Caxton FX each month, as well as Caxton’s business multi-currency cardholders.