Steve Kirsch, founder and CEO of Token

Steve Kirsch, founder and CEO of Token

Token, a Silicon Valley-based crypto-payment software provider, and digital bank Fidor have signed a memorandum of understanding (MoU) for digital payments.

The MoU will see Token’s software made available within Fidor OS, its digital banking and open community middleware solution.

Steve Kirsch, founder and CEO of Token, says its software enables banks to “call the shots in digital payments by launching their own transaction network”.

The partnership is Fidor’s reaction to the incoming PSD2. It says banks will be required to grant third party providers access to their customers’ data. In this context, “banks must now establish how they will accomplish this task while ensuring their data remains highly secure throughout the process”.

While using Token and Fidor OS, banks can use the open banking middleware platform and use Token to “generate new sources of revenue from Payment Initiation Service Providers (PISPs) via the execution of digital transactions and fulfilment of account data requests”.

Kirsch adds that banks will be able to tap into an API banking infrastructure, which can “enhance” transaction-based banking functions which currently rely on traditional legacy processes, from bill pay, to e-commerce checkouts, international money transfers, B2B payments, intra-bank transfers and more.