Reimagining payments with Token

A few weeks ago, I spoke with Co-Founder and CMO of Token, Marten Nelson. I was introduced to Marten after expressing interest in learning more about their patented Smart Tokenization technology. Following our conversation, I realized that Token is uniquely positioned to take on both sides of the banking ecosystem.

Unlike many of its digital bank counterparts Token is disrupting both open banking and the traditional banking ecosystems. Token facilitates fast and secure payments through Smart Token technology, giving banks a simple and quick path to PSD2 compliance. Allowing for data integration and direct payments. Token is a multifaceted approach to fixing the payments and banking systems.

Currently, all the primary payment systems in the world were created over 50 years ago, much before the invention of the internet. Instead of sending money over outdated, slow and insecure payment systems like ACH and wire transfers, Token hopes to disrupt the payments industry through smart tokenization. Token’s platform gives banks, payment service providers, and merchants smarter and quicker data aggregation as well as direct payment channels driven by Smart Token technology.

Token works directly with banks, merchants, peer services providers and developers to move money swiftly and securely. Currently, Token offers banks a simple way to comply with PSD2. Simply put, PSD2 mandates that EU banks build API’s or interfaces for third party use. This will likely result in a confusing mess of banks scrambling to comply with the impending regulation. By aggregating third-party API’s, Token solves a huge problem for EU banks. Founded in late 2015, Token already has 3,918 banks on their aggregated API platform.

PSD2 levels the playing field between banks and merchants, allowing third parties access to data previously monopolized by banks. This directive is the first opportunity for traditional merchants to implement financial services solutions, cutting out third party middlemen. Merchants can retrieve account data from the bank with account holder permission, cutting out the Visa’s, PayPal’s and Stripes of the world. Allowing merchants access to user-data not only accelerates technological innovation but leaves banks open to disruption.

Token made history on June 1st, by becoming the first licensed Payment Initiation Service Provider (PISP) to conduct an end-to-end payment through a public bank API.

The payment of £4.99 was confirmed as the first of its kind by UK Open Banking (the Open Banking Implementation Entity). Token fired the starting gun on the new age of API banking in Europe, driven by the recent introduction of PSD2.
With the infrastructure operational, banks, merchants and other providers of payment and data services can now leverage open banking to reduce costs, generate new revenues, increase security and deliver a simpler, more convenient digital payment experience for the end user.

Moving forward, it’s important to understand their go to market strategy. When you visit Tokens site, this chart is displayed:

It’s unsurprising that Denmark and Finland are next on the list. Right now, all retailers in Denmark must accept cash, but that hasn’t stopped huge numbers of Danes from embracing digital options.

Nearly 40% of the population use Danske Bank’s MobilePay, which allows money transfers between people, as well as purchases in stores or online. Token is specifically targeting digitally enabled countries.

When I spoke with Co-Founder and CMO, Marten Nelson, he said Token was strategically speaking with North American financial institutions to create partnerships and revenue streams for when PSD2 hits the United States and Canada. Partnering with banks and other FinTech’s is key to unlocking the key to both open banking and digital banking. To date, Token’s payment services run deep within n26, a leading digital bank.

Token has positioned itself to disrupt the banking industry through years of experience. Token’s led by serial Silicon Valley entrepreneur Steve Kirsch whose had successful exits from FrameMaker (acquired by Adobe Systems), and Infoseek, (acquired by the Walt Disney Company), as well as former Global Chief Technology Officer of Citigroup, Yobie Benjamin.

Token’s most recent funding round occurred on April 24, 2017 for $15M of Series A, pushing them to $18M total from EQT Ventures, Octopus Ventures, and Plug and Play. After speaking with Marten, it was clear that he was interested in adding investors to their next round.

In total, Token is a contrarian play hedged with regulatory serendipity. Their open banking platform and API aggregator serve as a great opportunity for Bedrock as it fits your thesis well. The team is top notch as is the technology behind them. I’m excited to see where Token goes, and the profit that follows.

Reminiscing after one year

Prior to graduating college, I secured two full-time job offers. One being in equity research and the other in business development for a clean-tech energy provider. I was interested in both, but neither made me excited to wake up in the morning. I wanted to help companies succeed, but these jobs didn’t give me the freewill and range to do that. To the dismay of my friends and family, I turned down two impressive offers to pursue something I wasn’t sure I’d be able to ever have.

However, that wasn’t the hardest decision of my life, in fact, maybe one of the easier ones. I knew I wouldn’t find my dream job sending cold applications, but rather through connections who knew and understood the type of person I was along with the ambition I had. I wanted to connect with everyone who was driving change. I was exchanging emails constantly, researching companies and hosted skype chats sometimes twice a day all while balancing school, a venture fellowship and pro-bono consulting work for an up and coming startup.

I got a taste of what I ultimately wanted – a life symbiotically intertwined with work and pleasure. During that year, I was positively impacting the companies I helped, and the people I met. I had exciting conversations that made me feel like I was on the path to attaining my goal, and I was. I met people from all walks of life ranging from VCs and startup founders to designers and carpenters. However, changed when I received two more full-time offers.

 In the palm of one hand, I had an offer from a strategic financing startup that specialized in helping small businesses scale. I loved everything about the company from the team to the dream.

 In the other, I had a great learning experience at one of the largest tech companies in the world. I was promised a role in strategy with the opportunity to help grow companies and startups alike.

This time around, I was happy with both offers and excited to start. The only problem was that I couldn’t work at both. For days I was unable to figure out which was best for me.

At first, the startup provided me the proximity to the companies I wanted to help, but not necessarily the mentorship and skillset I desired. I was scared to throw myself into a role while being so nascent to the industry. I thought this might actually hinder my chances at breaking into this type of role later in life.

When it came to the tech company, I didn’t want to be pigeonholed or sucked into a technology that didn’t interest me. I was told that I would be in strategy, something I saw as the perfect runway.

After toying with these ‘what if’ scenarios for days on end, I made my decision. Despite having a sexy title at the startup, a little bit of equity and enough dogs to play with until I became allergic, knew this was the right move. Being self-aware, I realized I didn’t deserve the role they gave me. I was confident in my skills, but figured they might’ve had clouded judgement if they were willing to give me such a key role so early in my career.
I felt like giving me complete autonomy and decision-making power over others wasn’t the best move for where I was in my career – the start. I didn’t build the company from the ground up and I didn’t help finance the operation. This was a company that was growing fast, and rather than finding the right person for the role, they found the first person for the role. I was extremely grateful, but wanted exposure to the wide variety of the technologies I so craved.

Looking back, I couldn’t be happier with all the choices I made. I’ve grown tremendously since my original skepticism and found I’m able and willing to help others even if I don’t benefit immediately. I was originally scared to be pigeonholed into a bad group, but quickly realized that hard work, networking and a little bit of luck trump any computer-generated pigeonhole.

Today, I’m a digital strategy consultant at IBM where I’ve worked on blockchain offerings, helped kickstart a Tech Talk series and even pushed a Fintech platform to market. I’m happy to be bridging the gap between the corporate world and startup ecosystem and can’t wait for the next adventure.

Hey kid, you should learn to code!

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Here is a link to an article that made me want to kick myself. I recently proposed an app idea to a friend in which I wireframed the design and basic function of an app that would curb social media usage. I figured it would be pretty simple to loop in data from the background of user’s phone battery and screen time. From there, I wanted to create an adviser that would access said data and then make a recommendation based on what applications were consuming the phones battery and screen time. I still think it is really easy to do.

It would be quick turnaround. Maybe two weeks after downloading the app and allowing it to monitor ones background, the adviser would send a push notification telling the user that he/she has been on App-of-choice and maybe they should take a break.

Unfortunately, my friend didn’t want to learn iOS and help a brotha out. It’s okay.

I wasn’t upset he declined the offer. Times like this are when I wish I knew more than basic code. However, stretching oneself too thin on external projects doesn’t serve anyone well. I kind of hope someone sees this and builds it. I’d rather see it built than just sitting in the back of my mind. Lucky for future me, my blog isn’t popping off to the point where people visit to poach my ideas.

Passover – the ultimate cleanse

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To all my faithful fans out there anxiously waiting to read some hot takes regarding my bread of choice, favorite cheese, and whether a hot dog is a sandwich, I’m sorry. I outwardly advertise myself on this site as well as my twitter as being a lover of sandwiches, but I haven’t paid attention to those of you who rely on me for news and advice on the NYC sandwich-verse.

A few weeks ago, I decided I would cut sandwiches out of my life. I came to realize that whether I’m eating basic deli turkey between wheat bread, with American cheese, or a chili flake crusted grilled chicken breast with homemade honey mustard, roasted red peppers and arugula topped with pepper jack cheese – neither were healthy options. My sandwich consumption wasn’t in moderation, and I’m proud to say, that I am one month sandwich free. It’s been a hard journey, but an important one. I’ve always loved food, but opted for the easy way out, a sandwich.

I used to eat sandwiches a lot, almost every day. I thought sandwiches were an easy transition to learning how to cook. While basic, I found that perfectly combining the necessary essentials for any sandwich gave me a basic understanding for the chemistry of taste as well as an in-depth opportunity to show some creativity in the kitchen. When you’re eating something as simple as a sandwich, it’s important to consider how you can improve something as easy as bread and meat. Without a creative view on sandwich making, including a variety of breads, meats and cheeses, I don’t think we would have made it as far in our relationship as we did. In hindsight, they aren’t an easy transition to cooking, they’re just easy.

During my observance of Passover, I realized I didn’t need bread in my life at all. Once I cut out sandwiches, it was easy to forget about the heavenly rolls and the crunch of a toasted ciabatta. Life is full of sweets and treats. It’s up to each of us to decide what we want to indulge in. In moderation, I can be a sandwich king, but until then, I think I will try to continue this sandwich hiatus.

Being open about my love for sandwiches, I don’t want anyone to think I’m addicted to sandwiches and blogging about it as a means of rehabilitation or a cry for help. I just really like them. Then again, who doesn’t like bread? I wanted to take a break and experiment with salads, quinoa and other lunchtime foods. In fact, I haven’t had a sandwich in weeks. I miss crafting something so simple as a sandwich, but have used my talents for other culinary treats, like muffins, tacos, and… cereal, a lot of cereal.

PLZ send me some recipes.

I should probably keep my day job.

I was asked to take part in a diversity series. Upon entering the room and introducing myself to the team, I subsequently knocked over and destroyed their $8,000 camera. It was even more embarrassing considering there were around 20 other people in the room waiting to be interviewed.

So, watch me stumble over my words in timid monotone fashion – all captured on an old iPhone 7.

I’m too cheap to host video capabilities, so here’s a link to my interview! Screen Shot 2018-03-22 at 13.03.17

Jambo! Shalom! Hallo! I’m Danny!

Welcome to my space! On this publication you will find a wide variety of thoughts translated into what I hope to be digestible English language! I can’t promise to bring expert level knowledge in anything.

Some topics you might find include consumer tech, surfing, sandwich commentary, funny (I hope) anecdotes about my life, and many more.

You can only have one first ever post, so here it is.

Bye for now, Danny