New partnership with Trustly to enable automated direct debits and one-off Open Banking payments across digital estate.
Virgin Media O2 (VMO2) is set to become the first major UK telecommunications provider to roll out automated direct debit setup and one-off payments using Pay by Bank, as part of a new partnership with Trustly.
The deal will see Trustly’s Open Banking technology integrated into VMO2’s digital estate over the coming months, streamlining onboarding and billing processes for new and existing customers. According to the companies, the collaboration will support faster and more secure customer sign-ups, while also offering simplified one-off payment options.
Direct debit account automation will allow customers to connect their bank account in real time, removing the need to manually enter details – a process that typically introduces friction during account setup. The option for single Pay by Bank payments will also be enabled for one-off bills or charges.
“We’re always looking at rolling out new products and services that can improve [customers’] experience with us. This partnership with Trustly will do exactly that – providing our customers with quick and secure ways to sign up and even simpler payment options to access our services,” says Christian Hindennach, Chief Commercial Officer at Virgin Media O2.
The agreement builds on VMO2’s previous Open Banking activity. The firm piloted direct debit automation in 2023, with reported uptake of over 60% among eligible users, and introduced digital wallets for recurring contract payments in 2024, a first for the UK telecoms sector.
For Trustly, the partnership reflects an ongoing focus on expanding its presence in the UK market. The Pay by Bank specialist already works with organisations such as Hargreaves Lansdown and HMRC, and processed nearly $100 billion in payments last year.
Johan Tjärnberg, Group CEO at Trustly, described the partnership as “a meaningful advancement in the adoption of Pay by Bank solutions in the UK.”
The announcement comes amid growing momentum for Open Banking payments in the UK. According to figures from Open Banking Limited, 13.3 million consumers and businesses were actively using Open Banking services as of March 2025 — up from just 4 million in March 2021.
A June 2025 report from the Joint Regulatory Oversight Committee (JROC) reiterated government ambitions to scale account-to-account payments for both retail and bill payments, highlighting variable recurring payments (VRP) and smoother onboarding as key focus areas for development.
