Fintech Atoa Gains FCA Approval to Expand Open Banking Services

Atoa, a provider of open banking payment solutions, has announced that it has received authorisation from the Financial Conduct Authority (FCA) to operate as an Authorised Payment Institution (API). This regulatory approval will enable the company to extend its services to encompass larger businesses throughout the United Kingdom.

According to a statement released by Atoa, the FCA approval will allow them to cater to a wider range of sectors, including automotive, beauty, law, hospitality, and retail. The company intends to offer what it describes as "a broader suite of regulated payment services." These services will include the initiation of payments for direct bank-to-bank transactions, which Atoa states will operate "without reliance on card networks." Additionally, Atoa will provide real-time payment account information to enhance transaction visibility for its clients.

To further bolster its service offerings, Atoa has established a partnership with embedded banking firm ClearBank. This collaboration will facilitate virtual account services, enabling bulk settlement payouts for Atoa's business clients.

Founded in 2022, Atoa offers a card-free payment solution designed as an alternative to traditional card payments and manual bank transfers. This system allows businesses to accept instant payments through QR codes, with customers completing transactions via a dedicated payment application. Atoa secured $6.5 million in seed funding in 2023, with backing from investors such as Passion Capital, Leo Capital, and Valar Ventures.