UK fintechs Token and Tradeteq get investment

Open banking payments platform Token and trade finance tech specialist Tradeteq have landed $15 million and $9.4 million, respectively.

Open banking payments platform Token secured $15 million in its Series B funding round. Existing investors Octopus Ventures, EQT Ventures and Opera Tech Ventures (BNP Paribas’ venture arm) were joined by newcomers SBI Investment Co. Ltd. and Sony Innovation Fund.

“The capital enables Token to continue driving the shift from traditional payment methods to account-to-account payments by providing the fastest and simplest path to adoption for large merchants, PSPs and banking-as-a-service platforms,” Token states.

Its use cases include funding an account, paying-off a credit card, paying a utility bill and other one-off payments, accounting package integration, credit risk analysis and cash flow management.

The company was founded in 2016 and became one of the first in the UK to be authorised by the Financial Conduct Authority (FCA) as a payment initiation and account information service provider. It also was the first payment initiation service provider to conduct an end-to-end payment through a PSD2-compliant bank API, in 2018.

According to CEO Todd Clyde, Token’s payment volumes have more than doubled every month since March last year and the platform processes live transactions through PSD2 APIs from over 600 banks in 14 countries across Europe. Among Token’s European customers are BNP Paribas, HSBC, Contis, OpenPayd, UpCo, and Money Dashboard.

Tradeteq, an electronic trading platform targeting the $15 trillion trade finance market, has raised $9.4 million in its Series A round from a number of US-based tech investors.

This follows on from its seed extension funding round, led by ADV, in mid-2018.

“Tradeteq is designed around the needs of originators and institutional investors”, it states on its website. “No more manual, error-prone processes, no more spreadsheets, no more cumbersome data aggregation.”

The company has reportedly handled $1.3 billion in transactions since its launch in 2016. 30,000+ invoices have been financed, and 5,000+ corporates funded.

Tradeteq’s platform underpins the Trade Finance Distribution (TFD) Initiative, launched in 2019 to use technology and standardisation for the wider distribution of trade finance assets. The initiative is backed by 14 banks from across the globe, including ANZ, Crédit Agricole CIB, Deutsche Bank, HSBC, ING, Lloyds Bank, Rabobank, Standard Bank, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.