Digitalization has shifted many aspects of "reality" to the online sector. Payment service providers are no exception. Hardly any other industry is growing as fast as e-commerce. Trustly Group AB has been able to benefit from this development in particular. Why is this the case and what else is there to know about this special payment system?

What is Trustly?

Trustly is a Swedish payment service provider headquartered in Stockholm. This payment method can be used in all EU member states as well as Norway. Since the 2019 merger with „PayWithMyBank,“ payments to and from the U.S. are also possible—without any increase in bank transfer times when using Trustly.

Transfers between merchants and customers are carried out via the company. This is done directly without intermediaries. Once the transaction has been completed, the merchant receives a confirmation from Trustly. The Swedish group's most prominent partners include:

- Skrill

- Payson

- Emerchantpay

- Alpha Fintech

Most of these companies belong to the financial sector. Collaborations of this kind enable Trustly to optimize its services and penetrate new markets.

History of Trustly

The payment service was founded in Stockholm in 2008 by Carl Wilson, Joel Jakobsson and Lukas Gratte. An initial geographical expansion in 2010 increased sales by more than 200%. In the same year, over one million transactions were carried out via the service provider for the first time.

The expansion plans were continued in 2014. Of particular note here are Trustly's new partnerships with Groupon and Paypaly. A full 10 million transfers were recorded in this year. In 2018, the company was estimated to be worth around 700 million dollars. In 2020, this figure rose to just under 2 billion and in April 2021 to around 9 billion dollars.

Open Banking

Open Banking is the technical possibility of giving merchants access to financial customer information. Payments can now be processed directly from your own bank account online. This has simplified online payments and opened up the business for service providers such as Trustly. In 2020, it is estimated that 75-80% in North America and the UK are already making online transfers. This segment is expected to grow further.

The PSD2 directive has provided legal certainty for European countries. It has become easier for companies such as Trustly to make online transfers. With the customer's consent, of course.

Further innovations are driving the technology forward. The speed of transfers and the simplicity of the process are already making open banking increasingly attractive to customers and merchants. Thanks to the legal framework established by lawmakers and the secure technology behind the scenes, revenue from online transfers continues to grow year after year.

Security with Trustly

In addition to the points already mentioned, there are other reasons that ensure the security of payment processing. First of all, Trustly promises never to store information relating to a user's personal bank details. This also simplifies any KYC checks and reduces the administrative effort on both sides - merchants and customers.

In addition to the banks' security measures, the Group adheres to the highest existing encryption standards. In addition to international legislation, the Group is monitored by the Swedish Financial Supervisory Authority. It has a PSP (Payment Services Provider) license. Trustly cooperates with merchants, banks and other authorities to prevent fraud.

Fields of application of Trustly

Casino and gambling are among the most widespread areas of application for Trustly. Over a quarter of transactions take place here. This is followed by computer electronics (5.38%), finance (4.67%) and lifestyle (2.69%). The remainder is spread across "other" areas.

Electronic Commerce

The Swedish company for users in the e-commerce sector promises fast and secure payments without limits and transactions. Chargebacks for merchants are minimized. The Swedish company takes responsibility for the entire payment process. In addition, invoices can be simplified, payments planned and paid in installments.

Financial services

In the financial services sector, the company offers reduced administrative expenses, increased customer loyalty and improved acquisition. It works with 6,300 banks, 8,100 merchants and 525 million customers worldwide. Those who become part of this network have access to a huge pool of different players and can penetrate new markets.

Games of chance and video games

The simplicity of the payment process is equally appealing in the gambling and video game sectors. Using Trustly at an online casino works without the need for an app or a separate login. The company assumes full responsibility for the transaction. No further Trustly casino fraud check is necessary. With its „Pay N Play“ offering, Trustly takes anonymity to the next level at casinos that don’t require registration.

Travel

We offer simple, fast and future-proof payment systems for the travel and tourism industry. Registering via Trustly is no longer a necessity. It is very easy to transfer money from A to B. The current report paints a picture of customer sentiment towards travel - a topic that is particularly relevant in times of coronavirus.

Trustly customer service

In addition to the usual FAQ, e-mail and telephone are available as contact points. There are two telephone numbers to choose from: One for Swedish customers and one for English speakers. Trustly is available to its customers from all countries with help and advice and will help you with any concerns.

Conclusion

At first glance, Trustly seems like just another online payment service provider among many. In fact, the Stockholm-based company excels at many things that other providers don’t do as well. A few points stand out. These include the many areas of application mentioned in which the company now operates: e-commerce, video games, online casinos, and tourism. Trustly has been on the rise since its founding, and for good reason.