Atoa, a London-based fintech startup, has been approved as an Authorised Payment Institution by the Financial Conduct Authority (FCA), allowing it to take on the crowded open banking payments market.
The startup was launched in 2022 by Sid Narayanan, a former banker at Standard Chartered turned tech entrepreneur who previously founded Singapore-based proptech firm Greyloft.
Atoa provides open banking-enabled payments that it claims comes with 50% cheaper processing costs compared with traditional card payments.
With the regulatory nod from the FCA, Atoa can deploy its digital payment tools across its target industries including retail, hospitality, beauty, automotive and professional services.
As an Authorised Payment Institution, the company can offer payment initiation services, virtual accounts in partnership with embedded banking firm ClearBank and payment account information services that provide real-time transaction data to businesses.
“This is a game-changing moment for Atoa. From day one, our goal has been to help businesses break free from the high costs and inefficiencies of traditional payment methods such as debit cards and manual bank transfers,” said Narayanan.
“Achieving FCA authorisation is not just a regulatory milestone—it’s a springboard for scaling our impact. We’re now in a position to serve larger businesses with even more advanced payment capabilities, and we’re only just getting started.”
Atoa is joining a packed club, with dozens of Authorised Payments Institutions approved by the FCA.
Atoa shareholders include Passion Capital, Moon Capital Ventures and Valar Ventures. In June 2023, the startup raises $6.5m (£5m), bringing its total funding to $9m.
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