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Take control of transaction costs with Open Banking Payments

In 2021 and beyond, there’s no room for bad customer experiences. Sales figures show that Europeans are shopping using digital payment methods in ever-greater numbers and expect their online checkout experience to be fit for the digital age: slick, quick and secure. Only Trustly Open Banking Payments offers all three.

One of the biggest issues that European merchants are facing is how to tackle the issues of legacy systems and processes when selling online. There are a lot of pain points that, fortunately, can be avoided.  We asked more than 1000 European merchants what they’re most concerned about when it comes to their payments strategy and future plans.

Spread out across major international trade hubs like the Baltics, Denmark, Finland, Germany, Norway, Sweden, and the UK (250), European merchants identified their top three most significant payments challenges in the coming years as: 

  • implementing new payment technology into existing technology platforms (40%)

  • satisfying local payment preferences with local payment methods (37%)

  • diversifying payment methods away from cards (35%).

Card payments come with trade-offs

On the whole, European merchants find card schemes difficult to deal with and feel that accepting card payments comes with a lot of trade-offs. 68% agree or strongly agree that variable fees associated with card schemes create uncertainty and are an issue to deal with. 65% agree that they are not in control of their card costs. This level of uncertainty and lack of control is causing merchants to rethink their options.

Local preferences and the introduction of digital-first payment options are key motivators for moving away from cards. Our survey also revealed why European merchants are reluctant to rely on card payments for cross-border transactions. Traditional payment methods and cross-border transactions generally don’t mix well together. As merchants look to modernise, they need to navigate new payment methods and technologies, different market preferences and compatibility issues, to introduce innovation in a cost-effective way. A method called ‘Open Banking Payments’ can help European merchants take back control of their payments operations.

The benefits of Open Banking Payments

  1. Open Banking Payments are online payments where funds travel from account to account. With Trustly’s unique structure, merchants get an all-in-one price rather than a variable-fee structure associated with card payments.

  2. Open Banking Payments help merchants to embed trusted payment providers on their websites, giving them control over the online customer journey and stronger influence over conversion rates.

  3. Open Banking Payments make instant refunds possible. This will help reduce the costs associated with customer support, cutting down the number of calls by around 25%. It also leaves merchants with generally much happier customers in regards to refunds.

  4. They also offer the opportunity to upsell. Trustly surveyed consumers across Europe and found that they would spend up to 23% more if offered faster refunds, while 29% say they would spend between 30% and 40% more. What’s more, 73% of shoppers wait for their money to be refunded before making a new purchase. Quicker refunds mean your customer is more likely to spend that money again with you.

  5. Open Banking Payments enable European merchants to expand without the headache of negotiating and connecting with multiple parties to access new markets.

Trustly’s unique account-to-account network bypasses the card networks, letting consumers make fast, simple and secure payments to European merchants directly from their banking accounts. We are the global leader in Open Banking Payments, and serve many of Europe’s most prominent merchants within exciting industries like E-commerce, Financial Services, Gaming and Travel. All benefit from increased consumer conversion and reduced operations, fraud and chargeback costs.

  • e-commerce