Trustly

"Smarter payments with instant, intelligent, and secure Pay by Bank solutions."

Where it wins

• Frictionless checkout: Personalised checkouts achieve conversion rates of up to 98%, processing payments 2x faster than traditional methods [1].
• Near-zero fraud: The Azura data engine leverages real-time data points to drop fraud risk to 0.012% [1].
• Instant liquidity: Provides instant refunds, deposits, and settlements, improving cash flow and consumer loyalty [1].
• End-to-end control: Manages the entire payment journey from initiation to settlement, ensuring transparency and reliability [1].

Credibility: Trustly connects 9,000+ merchants to 650 million consumers, processing $10 billion in annual payments and handling 275 million transactions yearly [1].

• Pay by Bank Network: Acts as an intermediary connecting merchants directly to consumer bank accounts, bypassing card networks [1].
• Data-Driven Verification: Uses the Azura engine to enrich payment data, enabling real-time fraud detection and customer verification [1].
• End-to-End Processing: Manages the entire lifecycle from payment initiation to settlement, ensuring security and transparency [1].
• Scalable Infrastructure: Leverages AWS (Redshift, QuickSight) to handle 275 million annual transactions with 4x faster insight generation [2].
• Market Expansion: Scales across 33+ markets, leveraging Open Banking regulations to expand reach and adoption [1].

• Traditional Card Networks: Trustly offers lower fees and instant settlement compared to Visa/Mastercard [1].
• Other Pay by Bank Providers: Trustly leads with a larger network (9k+ merchants, 650m consumers) [1].
• Digital Wallets: Provides a more direct bank connection without the need for wallet accounts [1].
• Direct Debit: Offers faster, more secure, and real-time payments compared to traditional direct debit [1].
• Differentiators: Azura data engine, near-zero fraud, instant liquidity, and extensive European market coverage [1].

• High Fraud Rates: Merchants face significant fraud risks with traditional card payments [1].
• Low Conversion Rates: Friction in checkout processes leads to cart abandonment and lost sales [1].
• Slow Settlements: Delayed payments impact cash flow and consumer loyalty [1].
• Complex Onboarding: Manual verification and onboarding processes increase operational load [1].
• High Transaction Fees: Card networks charge high fees, especially for large transactions [1].

Trustly's dominance in Pay by Bank positions it as a critical infrastructure player in Europe's shift away from card payments. The integration of Azura for data enrichment creates a moat through superior fraud detection and personalisation. The main risk is regulatory changes in Open Banking that could alter access to bank data. The opportunity lies in expanding beyond Europe into markets adopting similar frameworks. The next signal to watch is the adoption rate of their recurring payment solutions in subscription-heavy industries.

Expand the Azura engine's capabilities to offer predictive analytics for merchants, enhancing value beyond fraud prevention. Develop a more robust self-service analytics dashboard for merchants to track their own performance metrics. Explore partnerships with non-financial data providers to further enrich customer verification flows. Consider launching a dedicated API for developers to foster a broader ecosystem of integrations and innovations.