Leading account-to-account (A2A) payment infrastructure provider, Token.io, today announces the launch of its virtual settlement accounts, enabling payment providers to unlock the full potential of ‘Pay By Bank’ for ecommerce.
Token.io’s new virtual accounts solution will provide payment providers with real-time notification of settlement as they collect and hold funds in multiple currencies. This gives end merchants both the knowledge that they will receive funds, and the necessary assurance to release goods and services instantly.
Driven by the shift from cards to alternative payment methods and consumer demand for speed and convenience, analysts predict a bold future for open banking powered A2A payments (often called ‘Pay By Bank’) with e-commerce volumes expected to reach 4.4 billion annually in Europe by 2027.
Key to these predictions coming to bear is the ability for open banking payments to support real-time settlement confirmation, which gives merchants the confidence to fulfil orders at today’s lightning speed of commerce.
Under current open banking regulations, banks in Europe are not mandated to return payment settlement status to third party providers (TPPs) like Token.io, which initiate open banking enabled payments on behalf of payment service providers and their merchant customers.
Virtual accounts will also enable Token.io to offer instant refund capabilities: another prerequisite to unlocking the full potential of Pay By Bank for ecommerce. Data suggests that up to 20% of online-bought products are returned. Previously, refunds of open banking payment transactions required manual processes or technical development to a payment provider’s existing treasury system. With virtual accounts, payment providers can now seamlessly initiate instant refunds directly from their virtual account to a consumers’ bank account, with no manual intervention or additional money movements required.
Other benefits of Token.io’s virtual account offering include support for instant payouts, and the ability to disburse funds at custom frequencies. Lastly, Token.io’s virtual accounts solution enables the fastest time to market for payment providers by providing a flexible solution for transaction reconciliation and settlement to their corporate accounts, or directly to their merchant customers.
Token.io’s mission is to make Pay By Bank a truly mainstream payment method in Europe and beyond
Charles Damen • Chief Product Officer
“Token.io’s mission is to make Pay By Bank a truly mainstream payment method in Europe and beyond,” comments Charles Damen, Chief Product Officer, Token.io. "We have the highest performing and deepest connectivity for A2A payments with over 80% coverage in 16 countries, reaching over 567 million bank accounts in Europe. But virtual accounts were the missing piece of the puzzle — until today.
“Enabling real-time settlement status and instant refunds not only benefits payment providers and merchants, but will provide end consumers with an even more seamless e-commerce experience,” he added.
“We are seeing a once-in-a-generation upgrading of the infrastructure used by payments companies to enable global commerce”, commented Todd Clyde, Chief Executive Officer, Token.io. “With the addition of virtual accounts, Token.io’s complete A2A payments infrastructure will supercharge payment providers’ ability to grow with Pay By Bank as a core payment method for every channel, every device, and every market.”