Trustly

Last updated

Trustly
Trustly Logotype 2023.svg
Type of business Private
Founded2008;16 years ago (2008)
Headquarters
Stockholm
Country of origin Sweden
Founder(s) Carl Wilson, Joel Jakobsson, Lukas Gratte
ChairmanMorten Hübbe
CEOJohan Tjärnberg
Industry Financial services
Revenue 2.68 billion SEK ($265 million) (2023)
Employees900+ (2023)
URL trustly.com
Current statusActive

Trustly AB (publ), known as Trustly is a Swedish fintech company founded in 2008. [1] [2] Trustly is an open banking payment provider that allows customers to shop and pay from their online bank account, without the use of a card or app. The company claims that its account-to-account network supports 12,000 banks, reaching 650 million consumers and bypassing the card networks.

Contents

Trustly is used by more than 9,000 companies worldwide including PayPal, Alibaba, Facebook, eBay, AT&T, Unicef, Dell, Lyft, GoFundMe, TransferWise, DraftKings, and eToro. In 2020, Trustly launched in Australia and Canada, adding to its existing coverage in Europe and the US. [3] [4]

In 2023, Trustly generated revenue totalling $265 million, up 14% from 2022. The overall transaction value processed during 2023 climbed by 79%, to $58 billion. [5]

History

The company, originally named Glue Finance [6] was founded in 2008 in Stockholm, Sweden, and signed contracts that same year with the first online retailers. A first investment round was completed in 2009, and development of a second generation technical platform was launched. The company underwent a geographical expansion in 2010, after which its revenues grew by more than 200%. [7] The first office outside of Sweden was opened in Malta and over one million transactions were processed the same year. The second generation platform was launched in 2011, and 25% of the company was sold to the investment group Alfvén & Didrikson. [8]

In 2014, the company entered into a strategic partnership with Groupon [9]  as well as PayPal. [10] The 10 million transactions mark was reached and the risk capital firm Bridgepoint Capital (BDC) invested €23 million to gain a minority stake. [11] [12]

The arrival of Pay N Play epitomises Trustly’s mission to make online payments fast, simple and secure, transforming the way gamblers pay and play at online gambling from 2016. [13] More than 150 brands support payments with Pay N Play. [14] According to Trustly's VP of Gaming Vasilije Lekovic, this number passed 200 brands in 2022. [15]

The Swedish FinTech company ranked #242 on the publication's first ‘FT 1000: Europe’s Fastest Growing Companies’ list in 2017 based on its 3-year growth in revenue and staff. [16]

In March 2018, the private equity fund Nordic Capital bought a majority stake, some 70 percent of the existing shares, in Trustly. Ahead of the deal the company reportedly got valued at roughly €700 million. [17]

In June 2019, Trustly merged with Silicon Valley-based online banking payments leader PayWithMyBank. The merger enables merchants with a global footprint to accept online banking payments from European and US consumers. [18]

On June 10, 2020, Trustly announced a new round of investment from a consortium of investors, including BlackRock, which valued the company at close to $2 billion. [19]

In August 2020, Trustly expanded into Canada and Australia, marking its first step into the Asia-Pacific region. [20]

In April 2021, Trustly signalled their intention to list publicly on Nasdaq, Stockholm, seeking a valuation of almost $9bn, however the listing was postponed after Swedish regulators raised concerns about the company's lack of due diligence on its end customers. [21] [22] [23]

In May 2022, Trustly acquired the London-based public sector payment specialist Ecospend, which provides open banking services for HMRC. [24] [25] [26]

In August 2023, Trustly acquired the Paris-headquartered account-to-account payment fintech company, SlimPay for a reported sum of €70 million. [27]

In May 2024, Trustly CEO said that an IPO is still at least one year out. [5]

Security

Trustly is a licensed payment institution authorized and supervised by the Swedish Financial Supervisory Authority in the EU, EEA, and Financial Conduct Authority in the UK. [28] In the US, Trustly is state-regulated as required to serve its target markets. [29]

A Trustly payment uses two-factor authentication.

Criticism

Trustly faced criticism in 2013 from a competing bank when they used client information to log into the client's  Internet banking. The bank claimed that Trustly had gained access not only to the information required for performing the payment but also to information related to, for example, the client's mutual funds and shareholdings and therefore, banking confidentiality had been compromised. [30] The controversy resurfaced in 2016, in Poland when PayPal switched to Trustly [31] and a number of information security related websites and banks pointed out that the Trustly's practice is inconsistent with PayPal's own guidance to avoid revealing the credentials to third parties. [32] [33] In 2018, Finnish Financial Supervisory Authority ruled that the screen scraping technique used by Trustly is illegal. [34]

Trustly defended itself by saying that the company sets out a clear agreement for what information the company may access for performing payments and establishing identity, in the same way as banks. Like the banks, Trustly is under the supervision of the Swedish Financial Supervisory Authority as a licensed Payment Institute. [30]

Related Research Articles

<span class="mw-page-title-main">PayPal</span> American multinational financial technology company

PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers; it serves as an electronic alternative to traditional paper methods such as checks and money orders. The company operates as a payment processor for online vendors, auction sites and many other commercial users, for which it charges a fee.

<span class="mw-page-title-main">Adyen</span> Dutch financial services company

Adyen is a Dutch payment company with the status of an acquiring bank that allows businesses to accept e-commerce, mobile, and point-of-sale payments. It is listed on the stock exchange Euronext Amsterdam.

<span class="mw-page-title-main">Guaranty Trust Holding Company PLC</span> Multinational financial services group

Guaranty Trust Holding Company PLC also known as GTCO PLC is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services, headquartered in Victoria Island, Lagos, Nigeria. GTCO Plc was created in July 2021 following the corporate reorganization of Guaranty Trust Bank PLC into a Holding Company.

PayMate is a business-to-business (B2B) digital and financial services company headquartered in Mumbai.

Klarna Bank AB, commonly referred to as Klarna, is a Swedish fintech company that provides online financial services. The company provides payment processing services for the e-commerce industry, managing store claims and customer payments. The company is a "buy now, pay later" service provider.

<span class="mw-page-title-main">Payoneer</span> Financial services company

Payoneer Global Inc. is an American financial services company that provides online money transfer, digital payment services and provides customers with working capital.

<span class="mw-page-title-main">Stripe, Inc.</span> Irish-American multinational financial services and SaaS company

Stripe, Inc. is an Irish-American multinational financial services and software as a service (SaaS) company dual-headquartered in South San Francisco, California, United States and Dublin, Ireland. The company primarily offers payment-processing software and application programming interfaces for e-commerce websites and mobile applications.

<span class="mw-page-title-main">Fintech</span> Subset of technologies used in finance

Fintech, a clipped compound of "financial technology", refers to firms using new technology to compete with traditional financial methods in the delivery of financial services. The use of smartphones for mobile banking, investing, borrowing services, and cryptocurrency are examples of technologies designed to make financial services more accessible to the general public. Fintech companies consist of both startups and established financial institutions and technology companies trying to replace or enhance the usage of financial services provided by existing financial companies.

<span class="mw-page-title-main">Paytm</span> Indian financial technology company

Paytm is an Indian multinational financial technology company, that specializes in digital payments and financial services, based in Noida, India. Paytm was founded in 2010 by Vijay Shekhar Sharma under One97 Communications. The company offers mobile payment services to consumers and enables merchants to receive payments through QR code payment, Payment Soundbox, Android-based-payment terminal, and online payment gateway. In partnership with financial institutions, Paytm also offers financial services such as microcredit and buy now, pay later to its consumers and merchants.

<span class="mw-page-title-main">Cross River Bank</span> American financial services corporation

Cross River is an American financial services organization that provides technology infrastructure to fintech and technology companies. Based in Fort Lee, New Jersey, Cross River services its clients with embedded payments, cards, lending, and cryptocurrency, and is an FDIC member. Cross River is noted for its embrace of the trend in the financial services sector towards API-based payment platform services.

Ant Group, formerly known as Ant Financial, is an affiliate company of the Chinese conglomerate Alibaba Group. The group owns the world's largest mobile (digital) payment platform Alipay, which serves over 1.3 billion users and 80 million merchants, with total payment volume (TPV) reaching CN¥118 trillion in June 2020. It is the second largest financial services corporation in the world, behind Visa. In March 2019, The Wall Street Journal reported that Ant's flagship Tianhong Yu'e Bao money-market fund was the largest in the world, with over 588 million users, or more than a third of China's population, contributing cash to it.

<span class="mw-page-title-main">Revolut</span> British financial technology company

Revolut is a global neobank and financial technology company based in London, England. It offers banking services for retail customers and businesses. It was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko. It offers products including banking services, currency exchange, debit and credit cards, virtual cards, Apple Pay, interest-bearing "vaults", personal loans and BNPL, stock trading, crypto, commodities, human resources and other services.

Nium is a Singapore-headquartered cross-border payments company. Initially founded by Prajit Nanu and Michael Bermingham, and launched as a consumer-remittance platform Instarem in 2014. In 2016, the company introduced its B2B payments platform and rebranded as Nium in 2019, subsequently elevating Pratik Gandhi to co-founder in 2021.

Brex Inc. is an American financial service and technology company that offers business credit cards and cash management accounts to technology companies. Brex cards are business charge cards, which require at least $50,000 in a bank account if professionally invested, if not with $100,000 to open, and cardholders who default won't damage their personal credit or assets. Emigrant Bank issues the Brex cards.

<span class="mw-page-title-main">Affirm Holdings</span> U.S. financial services company

Affirm Holdings, Inc. is an American listed company founded by PayPal co-founder Max Levchin in 2012. It is a fintech company with a buy now, pay later service for online and in-store shopping. Affirm tops the U.S. buy now, pay later sector, reporting over 18 million users and US$20.2 billion annual GMV as of 2023.

Sezzle is a publicly traded financial technology company headquartered in Minneapolis, U.S, with operations in the United States and Canada. The company provides an alternative payment platform offering interest-free installment plans at selected online stores. As of June 2021, the Sezzle platform had over 10 million user sign-ups and over 48,000 participating merchants.

Pine Labs is an Indian company that provides point of sales systems and payment systems, founded in 1998. The company has a valuation of over US$5 billion.

<span class="mw-page-title-main">Chime (company)</span> American financial services company

Chime Financial, Inc. is a San Francisco–based financial technology company that partners with regional banks to provide certain fee-free mobile banking services. The company offers early access to paychecks, negative account balances without overdraft fees, high-yield savings accounts, peer-to-peer payments, and an interest-free secured credit card. Chime earns the majority of its revenue from the collection of interchange fees on debit card transactions.

Flutterwave is an African fintech company that provides a payment infrastructure for global merchants and payment service providers across the continent.

Airwallex is a multinational financial technology company offering financial services and software as a service (SaaS). Founded in 2015 in Melbourne, Australia and currently based in Singapore, the company is a financial technology platform providing cross-border payments and financial services to businesses through a proprietary banking network and its API. It also provides services and products such as business accounts, expense cards, and payroll, among others. It was Australia's third technology unicorn company overall. With a valuation of US$5.5 billion, as of 2022, the company processed $50 billion in annualized transactions.

References

  1. ↑ "WebCite query result". www.webcitation.org. Archived from the original on 1 November 2015. Retrieved 2 February 2016.{{cite web}}: Cite uses generic title (help)CS1 maint: unfit URL (link)
  2. ↑ "WebCite query result". www.webcitation.org. Archived from the original on 1 November 2015. Retrieved 2 February 2016.{{cite web}}: Cite uses generic title (help)CS1 maint: unfit URL (link)
  3. ↑ "Swidish fintech Trustly expands footprint into Australia and Canada". 27 August 2020.
  4. ↑ "Trustly till börsen under andra kvartalet – vill ta in 8 miljarder kronor". Realtid (in Swedish). Retrieved 27 June 2022.
  5. 1 2 Browne, Ryan (30 May 2024). "BlackRock-backed fintech Trustly says IPO still at least one year out even as profits jump 51%". CNBC. Retrieved 30 May 2024.
  6. ↑ http://gluefinance.com/
  7. ↑ "Powerful connections Sweden Technology Fast 50 2013" (PDF). deloitte.com. Retrieved 29 July 2023.
  8. ↑ "Trustly Group AB | Alfvén & Didrikson". www.alfvendidrikson.com. Retrieved 2 February 2016.
  9. ↑ "Groupon adds direct bank e-Payments from Swedish Trustly as a payment method". Mynewsdesk. Retrieved 2 February 2016.
  10. ↑ "PayPal and Trustly join forces for online direct transfers". www.thepaypers.com. Retrieved 2 February 2016.
  11. ↑ Erlandsson, Adam (4 November 2014). "Trustly tar in 200 miljoner". Svenska Dagbladet. Retrieved 2 February 2016.
  12. ↑ "Bridgepoint / Bridgepoint Development Capital Invests in European online payments services provider Trustly". www.bridgepoint.eu. Retrieved 2 February 2016.
  13. ↑ "Trustly accepts online gambling payment". FeedBACK Casino. 4 December 2018.
  14. ↑ "iGaming and Innovative Payment Solutions Gambling Statistics". Paynplay Casinos. 22 September 2022.
  15. ↑ "TRC Speaks to Trustly's Vasilije Lekovic on Company Successes, Current Partnerships, and Innovations Set for Launch". TopRatedCasinos. 12 August 2022.
  16. ↑ "The FT 1000: The complete list of Europe's fastest-growing companies". www.ft.com. Retrieved 1 May 2017.
  17. ↑ Karlsson, Johannes. "Nordic Capital förvärvar Trustly i storaffär". Di Digital. Retrieved 15 February 2018.
  18. ↑ "Trustly merges with Silicon Valley-based PayWithMyBank to deliver transatlantic online banking payments coverage". www.trustly.net. Retrieved 27 June 2022.
  19. ↑ "Värderingen sköt i höjden när Nordic Capital sålde i svensk betalraket". 15 July 2020.
  20. ↑ "Miljardvärderade Trustly tar första steget in i Asien". 26 August 2020.
  21. ↑ "Trustly announces plan for IPO". 13 April 2021.
  22. ↑ "Trustly announces plan for Nasdaq Stockholm IPO". Financial Times. 12 April 2021. Retrieved 27 June 2022.
  23. ↑ "Trustly postpones $9bn flotation after regulator flags concerns". Financial Times . Retrieved 30 January 2024.
  24. ↑ Conchie, Charlie (29 May 2022). "Trustly snaps up Ecospend in UK open banking push". CityAM. Retrieved 30 May 2024.
  25. ↑ Venkataramakrishnan, Siddharth (22 August 2022). "Fintech's double-edged sword and the cost of living crisis". Financial Times. Retrieved 30 May 2024.
  26. ↑ PYMNTS (31 May 2022). "Trustly Acquires Ecospend". PYMNTS.com. Retrieved 30 May 2024.
  27. ↑ Gain, Vish (29 August 2023). "Sweden's Trustly snaps up SlimPay to improve recurring payments". Silicon Republic. Retrieved 29 August 2023.
  28. ↑ "NewRegister". register.fca.org.uk. Retrieved 30 May 2024.
  29. ↑ "About us - the Trustly journey | Trustly".
  30. 1 2 "Storbankerna tar strid mot Blockets betaltjänst - DN.SE". Dagens Nyheter (in Swedish). 17 May 2013. Retrieved 2 February 2016.
  31. ↑ "Paypal oszalał i chce od Was danych logowania do banku". Zaufana Trzecia Strona (in Polish). 26 April 2016. Retrieved 27 April 2016.
  32. ↑ "Największe banki zaczynają blokować korzystanie z usługi Trustly". Zaufana Trzecia Strona (in Polish). 27 April 2016. Retrieved 27 April 2016.
  33. ↑ "Ostrzeżenie przed dopuszczaniem pośredników do rachunku bankowego w płatnościach internetowych" (PDF).
  34. ↑ "HSL valitsi lainvastaisen tekniikan? Kauan odotettu matkakorttien latauspalvelu viivästyy taas". Yle.fi (in Finnish). 6 February 2018. Retrieved 19 February 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.