Fidor Partners with Token in Programmable Money & Digital Payments

December 20, 2016         By: Mike Dautner

Token, Inc., a crypto-payment software provider that enables Banks to establish dominance in the digital transactions market, and Fidor AG, the software and services provider of banking solutions for the financial, telecom and retail industries, today signed a Memorandum of Understanding.

This MOU will allow Token’s software to be available within Fidor OS, Fidor AG’s digital banking and open community middleware solution, enabling Banks to offer secure digital payment services to third parties.

When PSD2, the revised European directive on Payment Services, comes into force, 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.

Together, Token and Fidor AG will bring a uniquely valuable turnkey solution to Banks and licensees of the Fidor OS platform.  While using Token and Fidor OS, Banks not only benefit from Fidor’s open banking middleware platform, saving them the cost, effort and time required to design a new open banking interface, it can also use Token to generate new sources of revenue from PISPs via the execution of digital transactions and fulfillment of account data requests.

Steve Kirsch, founder and CEO, Token, comments: “Token’s software enables Banks to call the shots in digital payments by launching their own transaction network. This capability, when combined with Fidor’s digital banking and open community middleware, creates a seriously compelling proposition for Banks looking to get ahead in the digital age.”

Steve Kirsch added: “Banks will be able to tap into a comprehensive and fully operational API banking infrastructure complete with the transformative attributes offered by programmable money. In the short-term our platform can be used as a springboard to generate revenues from PSD2 and XS2A. In the longer term, it can be applied to enhance the security, speed, cost and efficiency of a massive range of 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. Ultimately, we enable Banks to launch programmable money services and new methods of transacting, the use-cases for which are yet to be defined.”

“Fidor OS is a true enabler of next-generation banking, so it makes perfect sense for us to team up with Token,” said Matthias Kröner, CEO, FidorAG. “Like Token, our OS is modern, modular, open, API-based and free of legacy code. This enables Banks to use our suite of technologies to tailor their digital infrastructure to the precise needs of their customers. Adding Token to the mix simply extends the power and control we give to Banks in the digital age. Token’s technology has the potential to revolutionize how transactions, of all kinds, are performed. We want to give our customers this competitive edge as quickly as we can.”