Tink secures strategic investment from PayPal
Swedish open banking solution provider, Tink, received a fresh round of funding from PayPal, writes David Penn at Finovate.
Tink called the investment and partnership a “major vote of confidence in our tech and an indicator of the strength of the open banking movement in Europe.”
The investment from PayPal adds $11.2 million to Tink’s capital, boosting the fintech’s funding total to more than $105 million. As Tink’s newest partner, the payments giant plans to leverage Tink’s account aggregation technology to enable its European customers to connect their bank accounts to their PayPal accounts.
Offering account aggregation and payment initiation services via a single, API integration – as well as data enrichment and categorisation and personal financial management (PFM) services – Tink empowers fintechs to maximise the opportunities of open banking. More than 1400 developers are using Tink’s API platform to access financial data from hundreds of banks and financial institutions in markets across Europe. This access is paving the way for what the company called “the next generation of financial services.”
Vice president of global markets and partnerships for PayPal, Jennifer Marriner, echoed Tink’s enthusiasm for the transformative potential of open banking. “Tink has developed the infrastructure and data services for this new financial world – and we’re excited to work together to continue to democratise financial services,” says Marriner.
The funding will help drive Tink’s continued expansion across Europe. In recent months, the fintech has partnered with NatWest in the U.K, Mash in Finland, and Lunar Way in Denmark. The company began the year with both a big funding – picking up $63 million in a round led by Insight Venture Partners – and a big expansion, going live in five new European markets.
The San Jose, California-based company was founded in 1998 and now has a market capitalisation of $127 billion.