Tieto Banktech and XONO SOFT Partner to Launch Next-Gen Card Issuing in EEA

Tieto Banktech has completed the delivery of its end-to-end Card Suite platform to XONO SOFT, establishing the infrastructure for the fintech’s card issuing and acquiring operations across the European Economic Area. This partnership allows XONO SOFT to bridge traditional banking services with digital asset processing, providing a scalable, cloud-based foundation for both fiat and non-fiat financial transactions.

What was announced

The implementation phase, which began following Tieto Banktech’s selection as a strategic partner in 2025, is nearing completion. The full Card Suite platform includes an issuing management system, acquiring capabilities, switching and clearing functionalities, and a fraud management module. It also incorporates the latest 3D Secure (3DS) authentication module to ensure transaction security across all digital touchpoints.

XONO SOFT will utilize this infrastructure to operate both branded and white-label card issuing programs. The platform is designed to handle a variety of transaction types, including point-of-sale payments, e-commerce, and person-to-person transfers. Crucially, the system supports both fiat and non-fiat currencies, aligning with XONO SOFT’s focus on custodial and non-custodial wallet features for corporate and retail clients.

The solution is deployed via Amazon Web Services (AWS), allowing for elastic scaling as transaction volumes increase. Throughout 2025 and 2026, the companies have focused on the integration and testing of these systems. XONO SOFT is currently in the process of certifying this cloud-based platform with Visa and Mastercard. The company is on track to achieve direct card acquiring and issuing processor status, with a commercial go-live scheduled for the fourth quarter of 2026. This launch will target customers across the EEA, providing them with bank-grade infrastructure for managing digital assets alongside traditional IBAN services.

"Selecting Tieto Banktech as our technology partner in 2025 has been a major milestone in our journey. Over the past year, our teams have worked closely together on implementing and testing the platform, and we are very pleased with the progress and collaboration achieved. With commercial go-live planned for the end of 2026, we are creating an infrastructure where card issuing and digital asset processing can be delivered with the same trust, security and performance as traditional banking systems."

Alex (Oleksii) Pavlov, Founder of XONO GROUP.

The companies involved

Tieto Banktech is a prominent provider of financial technology solutions, operating as a core division within the broader Tietoevry Banking ecosystem. The company specializes in retail payments, card services, and instant payment infrastructure, serving a global client base that ranges from established tier-one banks to emerging fintech disruptors. Tieto Banktech’s Card Suite is a modular platform designed to manage the entire lifecycle of card issuing and merchant acquiring, emphasizing adaptability and rapid deployment through cloud-native architectures. The firm maintains a focus on continuous investment in research and development to align with evolving regulatory and technical standards.

XONO SOFT, which operated under the name Kauri One until its rebranding, has been active in the financial software space since 2018. The company focuses on the convergence of traditional finance and decentralized technology, developing software that links standard banking products like IBANs and payment cards with secure digital wallet features. Based in the EEA, XONO SOFT aims to provide bank-grade infrastructure to SMEs and retail users, allowing for the seamless management of diverse asset classes. By moving toward direct certification with major card schemes, the company is positioning itself as a primary processor within the European digital finance landscape.

What FF News has reported before

Tieto Banktech has a track record of supporting financial institutions in modernizing their payment and security frameworks. FF News previously reported on the company’s efforts to enhance transaction safety in the Nordic region when NOBA Bank Taps Tieto Banktech to Combat Fraud with Verification of Payee Rollout. That initiative focused on the implementation of Verification of Payee (VoP) services to mitigate fraud and improve the accuracy of cross-border and domestic payments. This ongoing focus on security and compliance is a recurring theme in Tieto Banktech’s deployments, as seen in the inclusion of advanced fraud management and 3DS modules within the new XONO SOFT infrastructure.

What this means

This partnership highlights a significant shift in the EEA market, where the line between crypto-native and traditional finance is increasingly blurred. By integrating Tieto Banktech’s established banking software with digital asset processing, XONO SOFT is addressing a critical gap: the lack of institutional-grade reliability in the digital asset space. This move puts pressure on traditional processors who have been slow to adopt multi-currency, fiat-to-crypto capabilities. The decision to go live as a direct processor rather than relying on intermediaries suggests a maturing fintech sector that is willing to take on the regulatory and technical burdens of scheme certification to achieve greater operational independence.