Open Banking platform Trustly has launched an AI-powered payments solution to “revolutionise” how merchants handle subscription payments.
The technology enables businesses to seamlessly accept recurring transactions directly from customers’ bank accounts, and navigate the limitations of typically time-consuming traditional payment methods, such as cards.
Trustly’s AI solution seeks to address the churn rates and payment failures that have plagued the repeat economy, enabling businesses to capture and retain more revenue.
With the subscription market projected to reach $1.5trn by 2025, Trustly saw an opportunity to provide an upgrade over traditional direct debit and card setups through the introduction of AI to streamline recurring payments.
The Open Banking payments company found that legacy methods falter under high demand and diverse consumer preferences, leading to an 8% churn due to card expirations and insufficient funds, with an additional 12% of setups failing from manual entry errors.
By automating the payment process, Trustly aims to drastically cut the 50% abandonment rate at checkout, where users find payment setups too cumbersome. This transformative technology expands upon the capabilities of Trustly Azura, the company’s proprietary data engine, which has already enhanced signup processes, security measures and fund collection efficiency.
Johan Tjärnberg, Group CEO of Trustly, stated: “We are leveraging AI and big data to transform the recurring payments landscape, ensuring transactions are timely and aligned with user preferences to minimise churn and increase lifetime value.
“My vision is for Trustly to become the leading next-generation payment platform, enhancing security and user experience with real-time data and outperforming traditional payment methods. We are making significant strides towards empowering merchants, simplifying payments and reducing uncertainties.”
Combining direct debit, account-to-account transfers and Trustly’s Azura engine, the new solution aims to offer an “unmatched experience for the end user”.
By enhancing convenience, security and reliability, optimising customer acquisition and satisfaction across Europe’s largest markets, Trustly will continue to leverage data to drive high conversion and retention rates.
