Open Banking provider Trustly is working with another Open Finance platform, Spreedly, to develop an enhanced pay-by-bank product for merchant customers.
The partnership comes as Trustly reported an uptick in pay-by-bank usage, particularly in the UK, with the company keen to capitalise on the surge and gain further momentum.
Central to the agreement is building upon this momentum in the US, a key market for Spreedy. The firm hopes to extend its market reach in the country by delivering its pay-by-bank capabilities to more US businesses.
There is a growing demand for pay-by-bank services in the US, Trustly believes, and it aims to capitalise on this demand by providing a pay-by-bank ‘pillar’ within North Carolina-based Spreedly’s wider payments platform.
“Our collaboration with Spreedly represents a significant step towards a unified payments experience becoming the industry standard,” said Ross McFerrin, VP of Enterprise Growth at Trustly, Inc.
“By integrating Trustly’s Pay by Bank offerings with Spreedly orchestration platform, we’re providing merchants an all-in-one solution that allows them to choose the best payment methods to offer their customers while simplifying the complexity of payment integrations.”
As stated above, Trustly has been taking a lot of confidence from the rise in popularity of pay-by-bank in European markets, such as the UK and the Nordics. In the latter, for example, the company asserts that it has encountered more brand awareness in Sweden over recent years.
Some of its most notable efforts have been in the UK though, where its Ecospend brand is partnered with the HMRC tax office. According to a recent Trustly report, UK tax payments via pay-by-bank are up 38% year-on-year to £12bn across 3.6 million transactions.
“It is fantastic to see the substantial increase in people using Pay by Bank,” said Johan Tjärnberg, Trustly CEO. “The technology is designed to make it quicker and easier to pay taxes.
“Using Pay by Bank means you enter less information manually, so there is less chance of mistakes. The technology also makes payments more efficient and reduces the cost per transaction.”
