Mastercard has selected Token.io to provide the connectivity layer of its forthcoming Open Banking hub.
Following the European-wide changes in data and transactional legislations of PSD2, Mastercard first announced news of the hub in June and this partnership aims to improve consistency in open banking.
The card payment services will use Token.io’s open APIs and operating systems to connect merchants, retailers and other regulated third parties to financial institutions in Europe for payment transactions and data.
“Open Banking has the potential to revolutionise how we all interact with financial services,” said Jim Wadsworth, Senior Vice President of Mastercard’s Open Banking offering.
“Our API-led solutions will make it easier for financial institutions and third parties to act on the opportunities and create innovative banking and payments experiences for people’s everyday lives. Token’s work in this space will help us to deliver the vision we’ve set.”
Mastercard will be using the hub to provide a pan-European directory to support banks and other financial institutions in ensuring that third-party providers seeking access to a customer’s account are legitimate and hold the appropriate regulatory status.
Steve Kirsch, Founder and CEO, Token.io added: “Fragmentation and a lack of consistency in third party access are creating complexity in open banking, so we welcome the chance to work with Mastercard and leverage Token’s open API platform, to address these issues at scale and together accelerate the global adoption of open banking.”
