Trustly
Trustly is a payment provider that lets customers pay merchants directly from a bank account. The Trustly platform connects the merchant's payment process to the customer's bank and supports payments, payouts and recurring collections. Account-based payments move money through bank connections, so the merchant can receive a payment without collecting the customer's card details.
Merchants use this service to offer account-based payments alongside other checkout options. Customers approve the required payment or access through the bank's authentication process, and Trustly handles the connection between the bank and merchant. The same infrastructure can support sending money back to a customer, including payouts and refunds.
Account-to-account payments
Trustly provides account-to-account payments and reports 12,000 connected banks in 33 markets, including Germany. Trustly is a licensed payment institution under PSD2, supervised by the Swedish Financial Supervisory Authority and, in the UK, by the Financial Conduct Authority. The company was founded in Stockholm in 2008 as Glue Finance and later bought PayWithMyBank in the US, Ecospend in the UK and SlimPay, a French direct debit provider.
Open banking as Trustly uses it
Trustly is a payment initiation service provider that has worked with open banking across Europe for more than ten years (Trustly). A payment initiation service starts a transfer from the customer's account at the customer's request. The bank has to give the licensed provider access through an interface, and the customer confirms the payment with the bank's strong customer authentication. Payment initiation services covers the license, and open banking in Germany the German market and its bank interfaces.
Pay by bank and instant payments
A bank payment reaches the merchant fastest when the transfer is an instant payment. Under the Instant Payments Regulation, banks in the euro area have to send and receive SEPA instant credit transfers at any hour, at no higher price than a standard transfer, and check the payee's name before the payment leaves. The merchant then has the money within seconds and pays no card fees. Instant payments in Europe explains the regulation, and account-to-account payments the checkout flow.
Recurring bank payments
A subscription paid by bank needs a mandate for later payments. SEPA direct debit is the classic form in the euro area, and Trustly bought SlimPay for that business. The UK has variable recurring payments, which an open banking provider starts within limits the customer sets. In the euro area the SEPA Payment Account Access scheme of the European Payments Council sets rules for such services between banks and providers. Variable recurring payments compares the UK model with the euro area, and the SPAA scheme covers the euro area rulebook.
Upcoming payments events in Europe
Payments & Digital Money
Risk & Compliance
How does a Trustly payment work?
The customer chooses to pay by bank at checkout, selects the bank and logs in to it. The customer confirms the payment with the bank's authentication, and Trustly as the payment initiation service provider starts the transfer from the account. The merchant receives a confirmation that the payment was started.
Is Trustly regulated?
Yes. Trustly is a licensed payment institution under PSD2, supervised by the Swedish Financial Supervisory Authority, and by the Financial Conduct Authority in the UK.
Is Trustly available in Germany?
Yes. Germany is among the markets Trustly lists for its account-to-account payments.
Open banking and bank payments
Companies
Trustly and Finance Loop
Finance Loop covers open banking and account-to-account payments in its Payments & Digital Money track.
Finance Loop connects marketing teams and financial professionals for discussions about merchant adoption of account-to-account payments in Europe. A company can outline a focused partnership naming the merchant audience and the acceptance or recurring-payment question the discussion should address.
Finance Loop is a professional network supporting the institutional use of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.