# Fidor partners with Token in Programmable Money & Digital Payments Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-12-20 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Token and Fidor AG Join Forces to Revolutionise Digital Meta Description: Learn how Token & Fidor AG's partnership will revolutionise digital transactions for Banks, providing enhanced security and revenue opportunities. URL: https://financedigest.com/fidor-partners-with-token-in-programmable-money-digital-paymentshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img4631-1323-1736844311575-compressed.jpg) 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 (MOU). This MOU will see Token’s software made 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](https://www.financedigest.com/as-saas-grows-financial-services-must-rethink-their-security-approach.html "As SaaS grows, financial services must rethink their security approach") throughout the process. Together, Token and Fidor AG will bring a uniquely valuable turnkey solution to [Banks](https://www.financedigest.com/citigroup-to-buy-deutsche-bank-license-in-mexico-for-wholesale-unit.html "Citigroup to buy Deutsche Bank license in Mexico for wholesale unit") 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 Payment](https://www.financedigest.com/sabadell-in-talks-with-worldline-nexi-and-fiserv-for-payments-deal-sources.html "Sabadell in talks with Worldline, Nexi and Fiserv for payments deal -sources") Initiation Service Providers (PISPs) via the execution of digital transactions and fulfilment of account data requests. This [puts Banks](https://www.financedigest.com/analysis-war-in-ukraine-puts-pressure-on-east-european-banks-to-prop-up-sinking-currencies.html "Analysis-War in Ukraine puts pressure on East European banks to prop up sinking currencies") in total control of the digital transaction chain, mitigating disintermediation from today’s payment-enabling third parties, like payment schemes and token service providers. Steve Kirsch, founder and CEO, Token, comments: “Token’s software enables [Banks to call the shots in digital payments by launching](https://www.financedigest.com/exclusive-china-regulator-launches-new-probe-into-banks-property-loan-exposure-sources.html "Exclusive-China regulator launches new probe into banks’ property loan exposure – sources") 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](https://www.financedigest.com/how-fs-organisations-can-enter-the-new-age-in-digital-banking.html "How FS Organisations Can Enter The New Age in Digital Banking") age.” Steve Kirsch added: “Banks will be able to [tap into a comprehensive and fully operational API banking](https://www.financedigest.com/central-banks-start-turning-off-the-cash-taps.html "Central banks start turning off the cash taps") 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](https://www.financedigest.com/digitally-projected-revenue-to-be-the-unique-selling-point-of-next-generation-centrifuge-market.html "Digitally projected revenue to be the unique selling point of Next Generation Centrifuge Market") 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](https://www.financedigest.com/embedded-payments-for-b2b-merchants-and-marketplaces-4-considerations.html "Embedded payments for B2B merchants and marketplaces: 4 considerations"), intra-bank transfers and more. Ultimately, we [enable Banks to launch](https://www.financedigest.com/seenthis-launches-emissions-dashboard-to-enable-advertisers-to-analyse-data-reduction-and-emission-savings-on-campaigns.html "SeenThis launches Emissions Dashboard to enable advertisers to analyse data reduction and emission savings on campaigns") 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](https://www.financedigest.com/could-the-npa-be-the-catalyst-banks-need-to-transform-their-payment-networks.html "Could the NPA be the catalyst banks need to transform their payment networks?") of their customers. Adding Token to the mix simply extends the power and control we give to Banks in the [digital age](https://www.financedigest.com/constructive-digitization-to-let-the-tissue-diagnostic-market-come-of-age.html "Constructive digitization to let the Tissue Diagnostic Market come of age"). Token’s technology has the potential to revolutionise how transactions, of all kinds, are performed. We want to give our customers this [competitive edge](https://www.financedigest.com/leveraging-ai-for-the-competitive-edge-in-insurance.html "Leveraging AI for the Competitive Edge in Insurance  ") as quickly as we can.” Token combines smart tokenisation and public-key cryptography to provide the [industry’s simplest and most secure transaction-based open banking](https://www.financedigest.com/how-is-green-finance-reshaping-the-banking-industry.html "How is green finance reshaping the banking industry?") API.In practice, Banks use Token’s [software to issue and redeem payment authorisations as smart tokens which can be programmed with any number of terms and conditions in accordance with the instructions of the account](https://www.financedigest.com/is-your-accounting-software-holding-you-hostage.html "Is your accounting software holding you hostage?") holder. This enables each smart token to be uniquely specified to the transaction it represents. They can also execute API callouts to external web services, enabling value added services to be integrated in just the same manner. Sensitive card or account [data never leaves the Bank’s systems](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-whole-slide-imaging-systems-market.html "Interoperability of data to accelerate the Whole Slide Imaging Systems Market"), masked or otherwise, vastly reducing the Bank’s security vulnerabilities. By putting a Bank in sole charge of their own digital payment network, Token eliminates the [Bank’s need to rely on partners to execute](https://www.financedigest.com/u-s-bank-executives-raise-concerns-over-inflation.html "U.S. bank executives raise concerns over inflation") digital transactions and launch new services, making them immune to competitive encroachment and disintermediation. The respective [Bank’s brand remains front and centre at all times](https://www.financedigest.com/how-to-nail-your-banking-audition-every-time.html "How to nail your banking audition every time"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---