Token.io is joining the SEPA Payment Account scheme (SPAA). The commercial API initiative aims to enable greater innovation and unlock wider adoption of A2A payments in Europe.

The initiative leverages open banking and instant payments. Specifically, it will directly support the establishment of a competitive pan-European payment solution. This is a key pillar of the retail payment strategies of both the European Commission and European Central Bank (ECB).

As a SPAA participant, Token.io will contribute to the development of the richer payment functionality outlined in the scheme’s rulebook and Minimum Viable Product for banks and TPPs.

Dynamic Recurring Payments and Payment Certainty Mechanisms

One example is Dynamic Recurring Payments, analogous to the UK’s Variable Recurring Payments capabilities. Another example is Payment Certainty Mechanisms. This will expand the use cases for instant bank payments to include one-click checkout and point of sale payments. These new payment capabilities will deliver benefits to payment service users throughout the EU.

They will also create robust competition with established payment methods. The result will enable banks to create new revenue opportunities and position Europe as a global leader in digital payments.

“We have been actively engaging with SPAA since its very early days. We are proud to be one of its first official participants,” said Charles Damen, Chief Product Officer at Token.io.

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SPAA: clear business model for all scheme participants

“SPAA has already established a clear business model for all scheme participants. It is attractive to banks, enabling them to complement and monetise their investments in PSD2. And it is persuasive for merchants, with fees for key payments functionality lower than cards),” added Damen.

“As a result, we have already seen strong interest from payment providers and merchants in leveraging SPAA functionality, particularly Dynamic Recurring Payments (DRPs). In fact, Token.io’s recent research shows 83% of banks believe they will drive commercial upside from DRPs. The majority of merchants would seek to convert card payments to DRPs. DRPs have real potential to become the ultimate frictionless, cost-effective payment option for Europe. We look forward to working with all participants to establish their first trials.”