Ecommpay Expands Token.io Partnership for Open Banking

Ecommpay, a global payment platform, has expanded its partnership with Token.io, a provider of account-to-account (A2A) payment infrastructure. The collaboration now includes virtual accounts for the Netherlands, Spain, France and Ireland, bolstering Ecommpay's Open Banking Advanced offering.

Virtual accounts, a feature that enables businesses to receive real-time settlement confirmation and process API-driven refunds or payouts, are now available in these four additional markets. This expansion aims to improve transaction speed and efficiency for e-commerce merchants.

The introduction of local settlement IBANs (International Bank Account Numbers) for these countries is designed to mitigate the risk of IBAN discrimination. IBAN discrimination occurs when businesses or financial institutions treat payments from foreign IBANs differently, potentially leading to delayed settlements or rejected transactions.

Moshe Winegarten, Chief Revenue Officer at Ecommpay, explains: “By providing businesses with local IBANs and seamless payments, we are reinforcing our commitment to driving financial inclusion and enhancing local payment capabilities to improve the customer experience, which, in turn, will support conversion for merchants.”

Driving open banking adoption

The partnership extension comes as the A2A payment market is projected to expand significantly. Open banking-enabled payments, also known as 'Pay by Bank', are expected to reach 5.3 billion transactions across Europe by 2027, according to industry forecasts.

Ecommpay was among the first Payment Service Providers to offer open banking capabilities to merchants in 2020. The company's Open Banking Advanced solution, developed in partnership with Token.io, is an enterprise-grade offering that includes virtual accounts as an exclusive feature.

Todd Clyde, CEO at Token.io, comments on the potential of open banking: “We are excited to enhance Ecommpay's Open Banking Advanced solution with Token.io Virtual Accounts, which enable instant refunds and payouts, among other key capabilities that help Payment Service Providers unlock the full potential of open banking payments for a vast range of markets and use cases.”

Open banking-enabled payments offer several advantages over traditional payment methods. For merchants, these include reduced costs, faster access to funds and improved cash flow. 

End users benefit from secure, seamless payments without the need to share card details or manually input sensitive data.

The expanded partnership also facilitates faster acceptance of funds through SEPA Instant, a pan-European instant credit transfer scheme. This feature allows for real-time payments across the Single Euro Payments Area, enhancing the speed of transactions for businesses and consumers alike.

Benefits for merchants and consumers

By leveraging Token.io's direct bank connectivity, open banking payments can be utilised by nearly anyone with a bank account in Europe, potentially broadening access to financial services.

The move underscores Ecommpay's commitment to financial inclusion and enhancing local payment experiences. Winegarten adds: “We are thrilled to extend our virtual accounts offering to more markets, building on our existing partnership with Token.io.”

For e-commerce businesses, the addition of virtual accounts in these new markets brings critical localisation benefits. It eliminates the risk of payment discrimination, which can slow down settlement, while also enabling faster acceptance of funds through SEPA Instant.

Clyde concludes: “Our partnership with Ecommpay continues to demonstrate the immense potential of open banking in transforming payment experiences and also highlights the opportunities that PSPs can realise when they embrace innovative, customer-centric solutions.”

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