diff --git a/client.go b/client.go
index ad0aded..230fbd3 100644
--- a/client.go
+++ b/client.go
@@ -1,6 +1,8 @@
 package nordigen
 
 import (
+	"context"
+	"errors"
 	"fmt"
 	"net/http"
 	"strings"
@@ -12,13 +14,15 @@ const baseUrl = "bankaccountdata.gocardless.com"
 const apiPath = "/api/v2"
 
 type Client struct {
-	c          *http.Client
-	secretId   string
-	secretKey  string
-	expiration time.Time
-	token      *Token
-	m          *sync.Mutex
-	stopChan   chan struct{}
+	c         *http.Client
+	secretId  string
+	secretKey string
+
+	token       *Token
+	nextRefresh time.Time
+
+	m        *sync.RWMutex
+	stopChan chan struct{}
 }
 
 type Transport struct {
@@ -26,53 +30,68 @@ type Transport struct {
 	cli *Client
 }
 
-func (c *Client) refreshTokenIfNeeded() error {
+// refreshTokenIfNeeded refreshes the token if refresh time has passed
+func (c *Client) refreshTokenIfNeeded(ctx context.Context) error {
 	c.m.Lock()
 	defer c.m.Unlock()
 
-	if time.Now().Add(time.Minute).Before(c.expiration) {
-		return nil
-	} else {
-		// Refresh the token if its expiration is less than a minute away
-		newToken, err := c.refreshToken(c.token.Refresh)
-		if err != nil {
-			return err
-		}
-		c.token = newToken
-		c.expiration = time.Now().Add(time.Duration(newToken.RefreshExpires-60) * time.Second)
+	if time.Now().Before(c.nextRefresh) {
 		return nil
 	}
+
+	newToken, err := c.refreshToken(ctx, c.token.Refresh)
+	if err != nil {
+		return err
+	}
+	c.updateToken(newToken)
+	return nil
 }
 
-func (c *Client) StartTokenHandler() {
-	c.stopChan = make(chan struct{})
+// updateToken updates the client token and sets the refresh time to half the
+// access token lifetime.
+func (c *Client) updateToken(t *Token) {
+	c.token = t
+	c.nextRefresh = time.Now().Add(time.Duration(t.AccessExpires/2) * time.Second)
+}
 
-	// Initialize the first token and start the token handler
-	token, err := c.newToken()
+// StartTokenHandler handles token refreshes in the background
+func (c *Client) StartTokenHandler(ctx context.Context) error {
+	// Initialize the first token
+	token, err := c.newToken(ctx)
 	if err != nil {
-		panic("Failed to get initial token: " + err.Error())
+		return errors.New("failed to get initial token: " + err.Error())
 	}
-	c.token = token
-
-	go func() {
-		for {
-			timeToWait := time.Until(c.expiration) - time.Minute
-			if timeToWait < 0 {
-				// If the token is already expired, try to refresh immediately
-				timeToWait = 0
-			}
 
-			select {
-			case <-c.stopChan:
-				return
-			case <-time.After(timeToWait):
-				if err := c.refreshTokenIfNeeded(); err != nil {
-					// TODO(Martin): add retry logic
-					panic("Failed to refresh token: " + err.Error())
-				}
+	c.m.Lock()
+	c.updateToken(token)
+	c.m.Unlock()
+
+	go c.tokenRefreshLoop(ctx)
+	return nil
+}
+
+func (c *Client) tokenRefreshLoop(ctx context.Context) {
+	for {
+		c.m.RLock()
+		refreshTime := c.nextRefresh
+		c.m.RUnlock()
+
+		timeToWait := time.Until(refreshTime)
+		if timeToWait < 0 {
+			timeToWait = 0
+		}
+
+		select {
+		case <-c.stopChan:
+			return
+		case <-time.After(timeToWait):
+			if err := c.refreshTokenIfNeeded(ctx); err != nil {
+				panic(fmt.Sprintf("failed to refresh token: %s", err))
 			}
+		case <-ctx.Done():
+			return
 		}
-	}()
+	}
 }
 
 func (c *Client) StopTokenHandler() {
@@ -98,17 +117,22 @@ func (t Transport) RoundTrip(req *http.Request) (*http.Response, error) {
 // NewClient creates a new Nordigen client that handles token refreshes and adds
 // the necessary headers, host, and path to all requests.
 func NewClient(secretId, secretKey string) (*Client, error) {
-	c := &Client{c: &http.Client{Timeout: 60 * time.Second}, m: &sync.Mutex{},
+	c := &Client{
+		c:         &http.Client{Timeout: 60 * time.Second},
 		secretId:  secretId,
 		secretKey: secretKey,
+
+		m:        &sync.RWMutex{},
+		stopChan: make(chan struct{}),
 	}
 
 	// Add transport to handle headers, host and path for all requests
 	c.c.Transport = Transport{rt: http.DefaultTransport, cli: c}
 
 	// Start token handler
-	c.StartTokenHandler()
-	defer c.StopTokenHandler()
+	if err := c.StartTokenHandler(context.Background()); err != nil {
+		return nil, err
+	}
 
 	return c, nil
 }
diff --git a/client_test.go b/client_test.go
index e452181..ca27667 100644
--- a/client_test.go
+++ b/client_test.go
@@ -22,7 +22,7 @@ func TestClientTokenRefresh(t *testing.T) {
 		t.Fatalf("NewClient: %s", err)
 	}
 
-	c.expiration = time.Now().Add(-time.Hour)
+	c.nextRefresh = time.Now().Add(-time.Hour)
 	_, err = c.ListRequisitions()
 	if err != nil {
 		t.Fatalf("ListRequisitions: %s", err)
diff --git a/token.go b/token.go
index 77fb6c2..c3b5318 100644
--- a/token.go
+++ b/token.go
@@ -2,6 +2,7 @@ package nordigen
 
 import (
 	"bytes"
+	"context"
 	"encoding/json"
 	"io"
 	"net/http"
@@ -16,6 +17,10 @@ type Token struct {
 	RefreshExpires int    `json:"refresh_expires"`
 }
 
+type TokenRefresh struct {
+	Refresh string `json:"refresh"`
+}
+
 type Secret struct {
 	SecretId string `json:"secret_id"`
 	AccessId string `json:"secret_key"`
@@ -23,16 +28,9 @@ type Secret struct {
 
 const tokenPath = "token"
 const tokenNewPath = "new/"
-const tokenRefreshPath = "refresh"
-
-func (c Client) newToken() (*Token, error) {
-	req := http.Request{
-		Method: http.MethodPost,
-		URL: &url.URL{
-			Path: strings.Join([]string{tokenPath, tokenNewPath}, "/"),
-		},
-	}
+const tokenRefreshPath = "refresh/"
 
+func (c Client) newToken(ctx context.Context) (*Token, error) {
 	data, err := json.Marshal(Secret{
 		SecretId: c.secretId,
 		AccessId: c.secretKey,
@@ -40,63 +38,69 @@ func (c Client) newToken() (*Token, error) {
 	if err != nil {
 		return nil, err
 	}
-	req.Body = io.NopCloser(bytes.NewBuffer(data))
-	resp, err := c.c.Do(&req)
 
-	if err != nil {
-		return nil, err
+	req := &http.Request{
+		Method: http.MethodPost,
+		Body:   io.NopCloser(bytes.NewBuffer(data)),
+		URL: &url.URL{
+			Path: strings.Join([]string{tokenPath, tokenNewPath}, "/"),
+		},
 	}
-	body, err := io.ReadAll(resp.Body)
+	req = req.WithContext(ctx)
 
+	resp, err := c.c.Do(req)
 	if err != nil {
 		return nil, err
 	}
+	defer resp.Body.Close()
+
+	body, readErr := io.ReadAll(resp.Body)
+	if readErr != nil {
+		return nil, readErr
+	}
 	if resp.StatusCode != http.StatusOK {
-		return nil, &APIError{resp.StatusCode, string(body), err}
+		return nil, &APIError{StatusCode: resp.StatusCode, Body: string(body)}
 	}
-	t := &Token{}
-	err = json.Unmarshal(body, &t)
 
-	if err != nil {
+	t := &Token{}
+	if err := json.Unmarshal(body, t); err != nil {
 		return nil, err
 	}
-
 	return t, nil
 }
 
-func (c Client) refreshToken(refresh string) (*Token, error) {
-	req := http.Request{
+func (c Client) refreshToken(ctx context.Context, refresh string) (*Token, error) {
+	data, err := json.Marshal(TokenRefresh{Refresh: refresh})
+	if err != nil {
+		return nil, err
+	}
+
+	req := &http.Request{
 		Method: http.MethodPost,
+		Body:   io.NopCloser(bytes.NewBuffer(data)),
 		URL: &url.URL{
 			Path: strings.Join([]string{tokenPath, tokenRefreshPath}, "/"),
 		},
 	}
-	data, err := json.Marshal(refresh)
-
-	if err != nil {
-		return &Token{}, err
-	}
-	req.Body = io.NopCloser(bytes.NewBuffer(data))
-
-	resp, err := c.c.Do(&req)
+	req = req.WithContext(ctx)
 
+	resp, err := c.c.Do(req)
 	if err != nil {
 		return nil, err
 	}
-	body, err := io.ReadAll(resp.Body)
+	defer resp.Body.Close()
 
-	if err != nil {
-		return nil, err
+	body, readErr := io.ReadAll(resp.Body)
+	if readErr != nil {
+		return nil, readErr
 	}
 	if resp.StatusCode != http.StatusOK {
-		return nil, &APIError{resp.StatusCode, string(body), err}
+		return nil, &APIError{StatusCode: resp.StatusCode, Body: string(body)}
 	}
-	t := &Token{}
-	err = json.Unmarshal(body, &t)
 
-	if err != nil {
+	t := &Token{}
+	if err := json.Unmarshal(body, t); err != nil {
 		return nil, err
 	}
-
 	return t, nil
 }