Source: Trustly

Demand for account-to-account payments is driving growth for Trustly according to the firm’s annual report for 2023.

The Swedish fintech, which specialises in Open Banking payments, reported revenue of $265m for the full year, 27% more than in H2 the year prior ($193.4m).

This was driven by an increase in transaction volume of 79% to £58m (2022: $12m), also marking a 48% increase on H2 2022 ($30m). Trustly noted that it experienced a notable upsurge in business during the latter half of the year.

Last year saw Trustly clinch a number of deal renewals as well as signing new clients and partners. In the latter half of the year, for example, the firm partnered with Coinbase, Stallion Casinos and Sergel.

The subsequent increase in total transaction volume and revenue resulted in an increase in operating profits, which rose 51%. Adjusted EBITDA stood at $51m, up by $33m from the previous year’s figure of $35m.

Johan Tjärnberg, Trustly Group CEO, said: “We’re committed to redefining the way people pay – and we’re thrilled that our annual report clearly demonstrates our progress. 

“Millions of people all over the world are now transacting with us, and our robust transaction numbers reinforce our leadership in pioneering open banking across Europe and the US. Change is on the horizon, and Trustly is at the forefront, ready to lead the charge.”

The firm carried out a capital injection of $156m to support this activity. In its 2023 report, the firm stated that this was due to a “notable change in user behaviour, characterised by an increase in transaction frequency and volume”.

This all goes back to a “strong preference” observed by the company for Open Banking technology. In the UK, for example, its Ecospend subsidiary noted a 16% YoY increase in tax payments made by Pay-by-Bank technology to £3.3bn.

As well as signing new partners last year and benefiting from a general upsurge in account-to-account and Open Banking payments, Trustly also undertook investments and strategy acquisitions.

The two most notable acquisitions last were the takeover of the aforementioned Ecospend in January and the August acquisition of SlimPay, a recurring payments company. This closely followed Trusty’s launch of its A2A platform, Azura, which its Chief Commercial Officer, Olof Wirfelt, later cited as a key potential growth driver in an interview with Payment Expert.

Looking ahead, Trustly is confident that it has secured a strong advantage in A2A and Open Banking payments, attributed to its cost and fraud prevention abilities and conversion rates achieved through Azura.

The firm concluded its 2023 report by stating: “With the market’s massive potential and these favourable conditions, Trustly is ideally positioned to capitalise on these trends as it plans to further strengthen its presence in key markets.”