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Trustly launches AI-powered recurring payments to boost European subscription economy

17 iunie 2024

Trustly Recurring Payments is a pan-European solution, available through a single API from one platform. already operational in France, the Netherlands, Italy, Germany, the United Kingdom, Spain, and Sweden.

Trustly, the global leader in open banking payments, unveiled its „innovative AI-powered recurring payments solution poised to revolutionise how merchants handle repeat transactions through a single integration” – according to the press release.


„This cutting-edge technology enables businesses to seamlessly accept recurring transactions directly from customers’ bank accounts, circumventing the limitations of time-consuming traditional payment methods such as cards. It addresses the involuntary churn rates and payment failures that have plagued the repeat economy, empowering businesses to capture and retain more revenue.” – the company explained.

Trustly’s new solution taps into the growing subscription market, projected to reach $1.5 trillion by 2025, offering a significant upgrade over traditional Direct Debit and Card setups used by millions across Europe. These legacy methods falter under high demand and diverse consumer preferences, leading to an 8% churn due to card expirations and insufficient funds, with an additional 12% of setups failing from manual entry errors.

By automating the payment process, Trustly aims to drastically cut the high abandonment rate at checkout, where users find payment setups too cumbersome. This transformative technology expands upon the capabilities of Trustly Azura, the company’s proprietary data engine, which has already enhanced signup processes, security measures, and fund collection efficiency.

„It significantly extends customer lifetime value by facilitating smoother recurring payment plans for services like TV streaming and also leverages verified user data to foster long-term loyalty.” – the company said.

Following the acquisition of SlimPay, this technology can also predict the optimal times for payment success, thereby mitigating issues related to insufficient funds. Enhanced fraud prevention measures, including biometric authorisation and verified payment credentials, further ensure the integrity and security of every transaction.

Johan Tjärnberg, Group CEO of Trustly, states: “We are leveraging AI and big data to transform the recurring payments landscape, ensuring transactions are timely and aligned with user preferences to minimise churn and increase lifetime value. My vision is for Trustly to become the leading next-generation payment platform, enhancing security and user experience with real-time data and outperforming traditional payment methods. We are making significant strides towards empowering merchants, simplifying payments, and reducing uncertainties.”

Following the publication of Trustly’s annual report, the company announced revenues of $265 million in 2023 and a 79% increase in transaction value from the previous year, totaling $58 billion.

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?