PayPal invests $11.2m in Tink

Latest investment in Swedish fintech firm sees PayPal embrace the open banking model

4Jun

San Jose-based payments giant PayPal has invested EUR10m ($11.2m) in Swedish fintech firm Tink.

Tink's technology has been designed to offer bank customers personalized advice based on their transaction history and will be utilized by PayPal to enable its own customers to connect their bank accounts to their PayPal accounts.

A number of leading European banks including BNP Paribas Fortis, ABN Amro and NatWest have integrated Tink's technology, with the Swedish firm attempting to take advantage of Payments Services Directive 2 (PSD2), the EU's payment-related rules.

PSD2 enables customer to bypass banks by authorizing third parties to access their banking data and initiate payments on their behalf.

Jennifer Marriner, VP of global markets and partnerships at PayPal, said: "Open banking is transforming financial services, allowing customers to more easily move and manage their money.

"Tink has developed the infrastructure and data services for this new financial world and we're excited to work together to continue to democratize financial services."

The Swedish firm has been actively expanding its European operations this year, having raised EUR56m prior to PayPal's investment. The cash boost from PayPal will lead it to "improve product experiences for PayPal customers" as the California payments giant taps into the startup's account aggregation technology.

Slack enjoys a 67  revenue boost as it heads to ipo small

Read next:

Slack enjoys a 67% revenue boost as it heads to IPO

i