Mastercard, an American multinational financial services corporation, chose token.io, a California-based, open banking platform, to provide connectivity to its new open banking hub. The hub will facilitate connectivity to merchants, retailers and other regulated third parties with European financial institutions for payment transactions and data exchange.
Earlier in Jun. 2018, Mastercard made an announcement saying that it is developing a suite of services to support the transformation taking place in the industry. The services included a pan-European directory of third-party providers (TPPs) to help banks ensure that these TPPs are legitimate; a fraud monitoring service to enable banks better access the risks associated with a given TPP; a dispute resolution mechanism; and a connectivity hub to help TPPs maintain communications with banks.
According to Jim Wadsworth, senior vice-president, -who is also leading the development of Mastercard’s open banking offering- open banking has the potential to bring revolutionary changes in the financial industry, transforming the way of interaction with financial services.
Token’s operating system –TokenOSTM, will connect third-party APIs with financial institutions’ APIs. Token, is an account information service provider (AISP) and payment initiation service provider (PISP), authorized by the Financial Conduct Authority in the UK.
In 2018, Token became the first and only PISP, who successfully completed testing with the CMA 9 (the nine largest banks and building societies in Great Britain and Northern Ireland, comprising the AIB Group (UK) trading as First Trust Bank in Northern Ireland, Bank of Ireland (UK), Barclays, HSBC, Lloyds, Nationwide Building Society, The Royal Bank of Scotland (RBS), Northern Bank trading as Danske Bank, and Santander), creating history.