The virtual accounts deliver real-time settlement notifications, instant refunds and payouts with open banking powered account-to-account payments
Token.io, an account-to-account (A2A) payments infrastructure provider, has launched virtual settlement accounts designed to unlock the “full potential of Pay by Bank for ecommerce”.
The UK-based fintech’s new virtual accounts will give payment providers real-time notification of settlement as they collect and hold funds in multiple currencies.
Token.io says this will give merchants both the knowledge that they will receive funds, and the necessary assurance, to release goods and services instantly.
The virtual accounts will also enable Token.io to offer instant refunds, which will come in handy given that up to 20% of products bought online are returned.
Other benefits include support for instant payouts, the ability to disburse funds at custom frequencies, and a solution for transaction reconciliation and settlement.
Analysts predict a “bold future” for open banking powered by A2A payments, driven by a shift from cards to alternative payments methods and consumer demand for speed and convenience.
Ecommerce volumes are expected to reach 4.4b annually in Europe by 2027, according to Juniper Research.
Currently, with A2A payments, Token.io has more than 80% coverage in 16 countries, and reaches 567m bank accounts in Europe, the fintech said. The virtual accounts should enable the fintech to capitalise on the ballooning ecommerce market.
Todd Clyde, chief executive officer at Token.io, commented: “We are seeing a once-in-a-generation upgrading of the infrastructure used by payments companies to enable global commerce.
“With the addition of virtual accounts, Token.io’s complete A2A payments infrastructure will supercharge payment providers’ ability to grow with Pay By Bank as a core payment method for every channel, every device, and every market.”
Charles Damen, chief product officer of Token.io, added: “Enabling real-time settlement status and instant refunds not only benefits payment providers and merchants, but will provide end consumers with an even more seamless e-commerce experience.”