TD tests tokenised payments through Project Agorá

TD Bank has successfully tested a new way to move money using 'tokenization' through a global initiative called Project Agorá. This technology essentially turns real US dollars into digital tokens that can be moved across borders and between different banking systems instantly. While this test focused on institutional movement, the implications for retail and consumer financing are significant. This technology aims to solve the 'plumbing' problems of the financial world, potentially making the backend of your financing programs faster and cheaper. For a retailer or service provider, this represents the next generation of payment infrastructure. Currently, when a customer is approved for financing, the settlement process between the lender, the bank, and your business can take days and involve multiple middlemen. Tokenization allows for programmable money. This means payments could be settled instantly, 24/7, without the traditional delays of the ACH system or international wire transfers. As these systems move from testing to reality, you can expect future financing platforms to offer faster merchant funding and lower transaction overhead. TD’s successful test proves that major traditional banks are getting ready to integrate these digital tools into their standard operations.

Source: Finextra — Lending

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