US-based open banking platform Token has raised $15.7 million in a Series A funding round from investors including Octopus Ventures, EQT Ventures and OP Financial Group.

Token’s open banking platform is designed to allow banks to meet the compliance requirements of the upcoming European Payment Services Directive (PSD2).

From January 2018, PSD2 will require banks to grant account access to a variety of customer-permitted third party service providers for the purpose of payment initiation and retrieving information.

Token was founded in 2015 by Silicon Valley entrepreneur Steve Kirsch and former global chief technology officer of Citigroup, Yobie Benjamin.

Steve Kirsch, CEO and founder of Token, said: “Securing the backing from such world-class investors allows us to grow and execute faster on our mission to reinvent the world’s payment systems by providing common, secure access to all banks and a modern, bank-centric payment ecosystem. Each firm shares our excitement about the future of open banking and fully appreciates the impact that programmable money will have on the future of digital transactions.

The lead investor in the Series A funding round is one of Europe’s largest venture capital teams, UK-based Octopus Ventures.

Simon Andrews of Octopus Ventures, added: “At Octopus we focus on backing unusually talented entrepreneurs and Token, headed up by serial entrepreneur Steve Kirsch, was a perfect fit for us. Token is proving that programmable money can transform the way the world transacts. We are looking forward to supporting Steve and the team in the next phase of growth and look forward to seeing the organisation develop from here on.”

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