Trustly, an open banking payments firm, anticipates handling a substantial $100 billion in total payments value by 2024. This forecast underscores the growing acceptance and utilization of open banking solutions as an alternative to traditional payment methods. Trustly’s services have been adopted by over 112 million consumers, indicating a significant shift in payment preferences. The rise of open banking is not only reshaping the financial landscape but is also paving the way for more secure and efficient transactions. This trend highlights the evolving nature of consumer behavior in the digital economy.
In earlier reports, Trustly’s rapid growth has been associated with its robust risk management capabilities, particularly in North America. Trustly’s risk engine mitigates potential issues such as nonsufficient funds and fraud, contributing to a projected 33% year-over-year growth in the region. This growth trajectory contrasts with the more cautious expansion strategies of other financial technology companies, showcasing Trustly’s confidence in its innovative solutions. As the open banking sector continues to develop, Trustly’s aggressive approach in adopting and promoting these technologies remains a key differentiator in the market.
What Drives Trustly’s Growth?
Trustly’s expansion in various regions is supported by strategic partnerships and innovative solutions. In Europe, collaborations with companies like Lenovo and Foodora have facilitated its market penetration. Trustly’s plans for further expansion in Germany and across Europe underline its commitment to strengthening its presence and client base in the region. By focusing on these partnerships, Trustly leverages its technology to cater to diverse consumer needs, effectively driving growth and innovation in the open banking sector.
How Are Consumers Responding to Open Banking?
Consumers are increasingly open to utilizing alternative payment methods. A recent study revealed that 46% of U.S. consumers are amenable to using open banking payments. This willingness is even more pronounced among millennials, with 66% expressing a high level of interest. This demographic trend indicates a broader acceptance and potential for open banking technologies to integrate seamlessly into everyday transactions, replacing more traditional payment methods.
Open banking and pay-by-bank solutions present several advantages, as emphasized by Trustly’s CEO, Alexandre Gonthier. For businesses, these solutions can significantly reduce card acceptance fees, while consumers benefit from non-expiring accounts and lowered decline rates. These features offer practical benefits for various industries, including financial services and online markets, where reduced transaction costs and increased convenience are paramount.
Johan Tjärnberg, group CEO of Trustly, highlighted the promising future of the account-to-account payment space, estimating it could reach $10 trillion by 2028.
“We’re proud our innovative payment solutions are leading the way,”
he stated. This optimistic outlook is fueled by Trustly’s commitment to advancing the capabilities of open banking payments and its strategic positioning in a rapidly evolving market.
Trustly’s growth and strategic moves reflect a broader shift towards open banking solutions globally. While significant progress has been made in terms of consumer acceptance and technological advancements, challenges remain in ensuring widespread adoption and maintaining security standards. As Trustly continues to push boundaries, its impact on the payment industry will likely drive further innovation and competition, benefiting both consumers and businesses.
