Trustly

Last updated

Trustly
Trustly Logotype.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)
Employees1000 (2023)
URL trustly.com
Current statusActive

Trustly AB (publ), known as Trustly, is a Swedish fintech company founded in 2008 that specializes in open banking payment solutions. Trustly enables customers to conduct transactions directly from their bank accounts, offering an alternative to traditional card-based payment systems. The company claims its network supports 12,000 banks and connects with 650 million consumers globally. [1] [2]

Contents

Trustly serves a variety of industries and is used by over 9,000 companies globally, including notable clients such as PayPal, DraftKings, and eBay. [3] In 2020, Trustly expanded operations to Australia and Canada, complementing its presence in Europe and the United States. [4]

In 2023, Trustly reported revenues of $265 million, a 14% increase from 2022, and processed $58 billion in transactions, reflecting the broader growth of open banking solutions. [5]

History

The company was originally named Glue Finance and was founded in 2008 in Stockholm, Sweden. [6] Trustly signed contracts with its first online retailers the same year. By 2010, the company opened its first international office in Malta and processed over one million transactions. Trustly introduced a second-generation platform in 2011, followed by a strategic investment from Alfvén & Didrikson, which acquired a 25% stake. [7]

In 2014, Trustly formed partnerships with Groupon and PayPal while securing a €23 million investment from Bridgepoint Capital. [8]

In 2016, Trustly launched "Pay N Play," a payment solution designed to streamline online transactions in the gambling sector. By 2022, over 200 brands supported the solution. [9] [10]

In 2019, Trustly merged with Silicon Valley–based PayWithMyBank, enabling global merchants to accept online banking payments across Europe and the U.S. [11]

Trustly has continued to expand its services through acquisitions, including Ecospend in 2022 and SlimPay in 2023. [12]

Security

Trustly is a licensed payment institution authorized and supervised by the Swedish Financial Supervisory Authority in the EU and EEA, and by the Financial Conduct Authority in the UK. [13] In the U.S., Trustly complies with state-specific regulations. [14]

Trustly employs two-factor authentication to enhance security during transactions.

Criticism

In 2013, a competing bank accused Trustly of accessing more customer data than necessary, including information about mutual funds and shareholdings, which allegedly compromised banking confidentiality. [15] Similar concerns emerged in 2016 in Poland when PayPal adopted Trustly’s services, with critics claiming this practice violated PayPal’s own policies. [16]

In 2018, the Finnish Financial Supervisory Authority ruled that Trustly’s screen-scraping practices were illegal. [17] Trustly has maintained that its practices are governed by clear agreements and regulatory oversight. [15]

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References

  1. ↑ "Trustly: «La tarjeta de crédito no tiene sentido para pagar online»". www.webcitation.org. Archived from the original on 1 November 2015. Retrieved 2 February 2016.
  2. ↑ "Trustly vill att vi betalar direkt från bankkontot". www.webcitation.org. Archived from the original on 1 November 2015. Retrieved 2 February 2016.
  3. ↑ "Swedish 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). 12 April 2021. Retrieved 27 June 2022.
  5. ↑ 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. ↑ "Glue Finance home". Archived from the original on 23 November 2012.
  7. ↑ "Trustly Group AB | Alfvén & Didrikson". www.alfvendidrikson.com. Retrieved 2 February 2016.
  8. ↑ Erlandsson, Adam (4 November 2014). "Trustly tar in 200 miljoner". Svenska Dagbladet. Retrieved 2 February 2016.
  9. ↑ "iGaming and Innovative Payment Solutions Gambling Statistics". 22 September 2022.
  10. ↑ "TRC Speaks to Trustly's Vasilije Lekovic on Company Successes, Current Partnerships, and Innovations Set for Launch". 12 August 2022.
  11. ↑ "Trustly merges with Silicon Valley-based PayWithMyBank to deliver transatlantic online banking payments coverage" . Retrieved 27 June 2022.
  12. ↑ Gain, Vish (29 August 2023). "Sweden's Trustly snaps up SlimPay to improve recurring payments" . Retrieved 29 August 2023.
  13. ↑ "NewRegister" . Retrieved 30 May 2024.
  14. ↑ "About us - the Trustly journey". Trustly.
  15. 1 2 "Storbankerna tar strid mot Blockets betaltjänst - DN.SE". Dagens Nyheter. 17 May 2013.
  16. ↑ "Paypal oszalał i chce od Was danych logowania do banku". 26 April 2016.
  17. ↑ "HSL valitsi lainvastaisen tekniikan? Kauan odotettu matkakorttien latauspalvelu viivästyy taas". 6 February 2018.
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