TrueLayer, one of the UK's most prominent Open Banking platforms, has secured £130 million in a Series E funding round led by Tiger Global and Northzone, valuing the company at approximately £1.2 billion. The capital will be used to expand its Pay by Bank product across France, Germany, and the Nordics, where PSD3 preparations are creating new commercial opportunities for account-to-account payment providers.

The company processed more than £8 billion in payment volume over the past 12 months, with iGaming, travel, and e-commerce representing its fastest-growing verticals. CEO Francesco Simoneschi said the fundraise reflects growing merchant demand for alternatives to card networks. "Merchants are paying 1.5 to 3 per cent on every card transaction. Pay by Bank cuts that to a fraction while settling instantly," he told reporters at a London press briefing. "The economics are simply too compelling for large-volume merchants to ignore."

The round comes amid a wave of consolidation in the Open Banking sector, with Visa's acquisition of Tink and Mastercard's purchase of Finicity reshaping the competitive landscape. TrueLayer's decision to remain independent positions it as one of the last major standalone players, though analysts at Sifted suggest the company could itself become an acquisition target as card networks seek to hedge against the account-to-account payments trend that threatens their core interchange revenue.