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Token.io joins SPAA scheme

Source: Token.io

Leading account-to-account (A2A) payment infrastructure provider, Token.io, has announced it has become an official participant in the SEPA Payment Account Access (SPAA) scheme: a commercial API initiative that will enable greater innovation and unlock wider adoption of A2A payments in Europe.

Through leveraging Open Banking and instant payments, the SPAA scheme will directly support the establishment of a competitive pan-European payment solution, which is a key pillar of the retail payment strategies of both the European Commission (EC) and European Central Bank (ECB).

As a SPAA participant, Token.io will contribute to the development of the richer payment functionality outlined in the scheme’s rulebook and Minimum Viable Product for banks and TPPs. Examples include Dynamic Recurring Payments (analogous to the UK’s Variable Recurring Payments capabilities) and Payment Certainty Mechanisms, which will expand the use cases for instant bank payments to include one-click checkout and point of sale payments. These new payment capabilities will deliver benefits to payment service users throughout the EU, while creating robust competition with established payment methods, enabling banks to create new revenue opportunities, and positioning Europe as a global leader in digital payments.

“We have been actively engaging with SPAA since its very early days, and are proud to be one of its first official participants,” said Charles Damen, Chief Product Officer at Token.io.
“SPAA has already established a clear business model for all scheme participants that is both attractive to banks (enabling them to complement and monetise their investments in PSD2) and persuasive for merchants (with fees for key payments functionality lower than cards),” added Damen. “As a result, we have already seen strong interest from payment providers and merchants in leveraging SPAA functionality, particularly Dynamic Recurring Payments (DRPs). In fact, Token.io’s recent research shows 83% of banks believe they will drive commercial upside from DRPs, and the majority of merchants would seek to convert card payments to DRPs. DRPs have real potential to become the ultimate frictionless, cost-effective payment option for Europe, and we look forward to working with all participants to establish their first trials.”

This announcement marks another significant milestone for Token.io — recently recognised as the ‘Best Open Banking System’ at the 2023 Banking Tech Awards — complementing the company’s track record of innovation, which includes launching the first online payments service to combine SEPA Instant and PSD2 APIs (BNP Paribas’ Instanea).

The SPAA scheme was developed collaboratively by the European Payments Council (EPC), the retail payment industry (as represented by the Euro Retail Payments Board) and is supported by relevant EU institutions, including the European Central Bank and the European Commission. Token.io will be officially listed as a scheme participant in the EPC register as of 9th February 2024.

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