Finland's OP Financial group has signed a deal with Silicon Valley-based Token to use the startup's API-based transaction network to prepare for a new era of payments arising from the forthcoming implementation of the PSD2 Directive.
The deal with OP Financial is Token's second engagement in the European banking space, having cut an agreement in December to integrate its software into the banking-as-a-service middleware layer of Germany's Fidor Bank
Steve Kirsch, founder and CEO, Token, comments: “Through our platform, OP Financial Group will have access to a fully operational API banking infrastructure which, when combined with the transformative attributes of programmable money, has the power to change the way the world transacts.”
OP Financial has set up a purpose-built lab to work with and roll out new technology from third party fintech startups.
Kristian Luoma, head of OP Lab says: “Our collaboration with Token exemplifies OP’s new way of working with start-ups in general. Through our Lab programme, we’re able to move faster with partnerships like the one we have established with Token.”
Token’s software can be used to issue and redeem payment and account information authorisations as smart tokens, which can be programmed with any number of terms and conditions in accordance with the instructions of the account holder. Using the Token network, sensitive card or account data never leaves the bank’s systems, masked or otherwise, reducing the bank’s security vulnerabilities.
Masa Peura, director new business, OP Financial Group. “We’re using Token’s open banking software to get an early foothold in a new era for payments. Together, API banking and programmable money have the potential to transform the way banks transact. In the short term, we are investigating interesting market opportunities with Token that put us in the driving seat and prepare us for the enactment of PSD2.”