When the Federal Reserve launched FedNow in July 2023, it ushered in a new era of instant payments in the US. The Fed, releasing its first new payment rail since the 1970s, promised to “help make everyday payments over the coming years faster and more convenient.”
Following FedNow’s launch, businesses and individuals across the US can now make domestic payments faster than ever, revolutionizing the way cash moves throughout the economy.
As a sector intertwined with advanced technology, the online betting and gaming industry is ripe to take full advantage of the speed and convenience FedNow affords merchants and consumers alike. One company is making this one of its missions.
Trustly is one of the first payment providers in the industry to add FedNow instant payments to its suite of Open Banking-powered solutions. This allows Operators to provide players with a means to cash out their funds quicker than ever.
Trustly added the new payment rail to its offerings alongside the preexisting Real Time Payments rail, which The Clearing House introduced in 2017. Now, Operators can choose between RTP and FedNow payments, giving consumers increased access to instant payouts.
By adopting both payment rails, Trustly can increase its reach and cater to additional players throughout the US, especially since FedNow covers additional banks not originally serviced by the RTP network. Additionally, offering both rails aids in delivering an improved user experience to more players through its seamless and instant payouts, which help Operators increase player satisfaction and retention rates.
Clark Dumas, VP of Merchant Success at Trustly, stated: “Real-time instant payouts have a direct link to consumer satisfaction. No one, especially players and bettors, wants to wait days on end to receive their funds.” According to PYMNTS, 92% of consumers who received funds in or near real-time reported being highly satisfied.
By offering both FedNow and RTP payments, Trustly is giving more bettors the opportunity to use instant payouts. The service opens up instant payment options to bettors whose banks are not participants of the RTP network.
After all, the pre-existing RTP rail still provides growth avenues for Trustly. The company told PYMNTS that in Q3 of 2023, their RTP volume grew 29% in transaction volume and 31% in payment value.
Trustly believes that its adoption of FedNow will allow it to grow further in the betting and gaming sector, reaffirming its position as one of the industry’s leading payment providers.
“FedNow was a highly anticipated payment innovation last year, so being one of the first to bring FedNow to gaming shows that we’ve listened to the market to deliver more flexible options for people to get their payouts,” Dumas added.
“Trustly is one of the largest originators of instant payments on the RTP network, so we want to bring the same dedication we have on instant payment adoption to FedNow.”
Trustly’s performance on the RTP rail shows its commitment to delivering instant payments throughout the US. As FedNow’s future promises to provide faster, more reliable, and safer payments to a much broader user base, Trustly seeks to be the trailblazer across all industries, especially in gaming and sports betting.
