Trustly is a payment gateway software for enterprise-level businesses that has been around since 2008. It is the product of a Swedish fintech company of the same name, and it allows users to make online money transfers without an app or card. It provides this service via London-based Wise and PayPal.
Trustly facilitates seamless account-to-account payments. It simplifies the streamlining of invoices, optimizes refund processes, and makes one-click and recurring payments easy. Its extensive bank network gives companies that choose to utilize it a chance to broaden their access to diverse markets.
Trustly History
Founded in 2008, under the name Glue Finance, Trustly signed contracts with its first set of retailers that year. In 2009, its team began work on the second generation of the platform, which went online in 2011. By that time, the company had opened its first international office in Malta and had hit the milestone of processing over one million annual transactions. Three years later, Trustly reached the ten million mark and entered into a strategic partnership with PayPal and Groupon.
In 2016, this Swedish entity began offering its Pay N Play online payment solution, and it managed to rank 242 on the Financial Times list of 1000 fastest-growing companies in Europe. Over the years, Trustly has managed to strike many deals from consortiums of investors, and in 2020, it expanded into Australia and Canada.
How Does Trustly Work?
Trustly is a payment option that performs transfers from your online bank account. It does not require a user name or password, only a BankID. It lets users pay directly from their Trustly interface, which conducts intra-bank transfers. Meaning it settles and clears transfers from one financial institution to another. The service uses open banking, a secure way for consumers to share financial data with service providers or merchants. Over 90% of all transactions through this method happen immediately. However, small banks that operate within this network may spend a day on processing, two at the most. Users can view their payment details made via this payment option on their banking reports.
Trustly is a licensed institution supervised and authorized by the FI (Swedish Financial Supervisory Authority), which falls under the Swedish Ministry of Finance. It is also an authorized European Payment Services Provider.
Trustly Features
As mentioned, Trustly is an advanced payment gateway that utilizes features such as customizable invoices, custom checkouts, recurring billing, ACH payments and eCheck processing, split/real-time payments, and many others.
Security-wise, it implements fraud protection, 2FA, data tokenization, and is PCI compliant. It has accounting and e-commerce software integration, API and allows for layout customization.
Territories & Industries Served
So far, this service is available in 31 countries and has a customer reach of 525 million. It connects 6,300 banks, and 8,100 merchants use its services.
Trustly is super popular in the online gambling industry, as it provides fast withdrawals for iGaming. Its Pay N Play system allows playing casino-style games for real money without the creation of an account. The travel industry is also fond of Trustly because it has multi-currency functionality. It also has a growing reach in the E-commerce field.
Benefits of Using Trustly
Per studies, about 48% of customers abandon online purchases when they run into complicated checkout processes, and 72% want to use an online banking method for shopping online. In essence, customers want simplicity, speed, and trust. These are things that Trustly provides. It features advanced security, is available in most big-brand banks, allows online shopping, gaming, and financing, and most transfers through it go through instantly. Its list of accepted currencies is vast, and depending on which one you choose, its payment algorithm will differ. All the transaction fee rates are transparent. Remember, the service does not charge fees, but the banks can and do.
Trustly Criticism
In the past, Trustly has come under fire for gaining access to user information that stretches beyond those necessary for payment processing. In 2016, in Poland, when PayPal switched over to using Trustly’s system, several websites identified that guidelines regarding revealing credentials to third parties were inconsistent with PayPal terms. Trustly defended itself that it accesses information in the same way as banks do, that there is nothing controversial about their practices. It is under constant supervision of the Swedish Financial Supervisory Authority, and all of its activities are in line with usual bank practices.
FINAL THOUGHTS
Trustly has grown tremendously over the past decade. In April, the Swedish company announced that it plans to list its shares on the Nasdaq Stockholm exchange. Analysts believe that the company may receive a market valuation of around $11 billion, 60 times their expected core earnings for 2022. In most eyes, Trustly is a quality asset in a currently hot space. It has a decent track record that goes back a decade and is a fast and reliable payment method growing in popularity.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by OnlineUnitedStatesCasinos.com. However, over her eleven-year career, Shelly has provided content for many other top interactive gaming websites. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.