Trustly has reported a 230% increase in spending via Open Banking in the UK travel sector in January 2025, compared to the same period last year.
According to the company, spending via Pay by Bank for travel has risen by 7% year-on-year in January across Europe. After the UK, Germany saw the largest increase in spending, with a 22% growth compared to the same month last year.
This growth is based on Trustly’s transaction data from over 250 travel businesses across Europe which use its technology.
Simon Eve, VP of Travel and E-Commerce at Trustly UK, said: “Payments are particularly complicated in the travel industry, where delayed settlements are common and businesses face a higher fraud risk that drives up cost and increases operational challenges.
“To tackle this, airlines and hotel providers are now offering Open Banking payment options as well as traditional card payments.”
Trustly’s influence in the travel industry has grown over recent years, partnering with well-known firms such as Booking.com, Etihad Airways, Norwegian Air, KLM, Wizz Air, Air France and Stena Line.
While this rise in usage may be partly attributed to January being one of the busiest months for travelling, due to businesses offering discounts, it still indicates a positive trend in user adoption.
In addition to minimising fraud risk, Eve explained that Open Banking creates multiple efficiencies for firms reducing processing fees, cutting chargebacks and allowing for faster settlements, which improves cash flow.
He added: “As travel firms typically deal with high-value transactions and long settlement delays, they stand to gain significantly by adopting account-to-account payments. Our figures show this has resulted in an impressive increase in Open Banking transactions compared to previous years.”
Growth in the US
Demand for Open Banking is reaching new heights, and while the UK is often seen as a leader in the sector, the US has been developing its own regulatory framework around the payment method. Whilst the US is experiencing slower adoption rates, this can be attributed to several factors, with a reliance on card transactions being a key challenge.
However, Trustly recently announced a partnership with Open Finance platform Spreedly to develop an enhanced Pay by Bank product for merchant customers. This collaboration aimed to build upon the momentum in the US, a key market for Spreedly.
Focusing on the travel sector could prove effective for Trustly, as it exposes the payment method to a diverse range of international customers. However, payment giants Visa and Mastercard are still active in the sector, so it won’t be without challenges.
