Why digital native solutions are necessary to cut your payment costs

Cross-border eCommerce has exploded in Europe and merchants are waking up to the potential in payments to secure international business. They’re increasingly looking to extend the payment options they offer and seek out new and relevant payment methods that resonate with their audience. They have to adapt to their customers' demands. And Open Banking Payments are geared towards what customers want.

Pre-internet payment methods like debit and credit card payments, manual bank transfers, were not built for the modern-day. The result is a number of restrictions, friction points and cost issues for European merchants. Plus, card payments and manual bank transfers don’t offer the flexibility and customer experience potential of newer digital payment methods like Open Banking Payments. Living in the era of “instant culture” across all industries, payments need to keep up. And if there’s one thing today's consumers don't have time for, it's poor customer experiences.

We asked more than 1000 European merchants what they’re most concerned about when it comes to the future of payments. Zooming in on cards specifically, more than two-thirds (68%) think the variable cost for cards creates uncertainty, while nearly half (46%) think the cost structure of cards lacks transparency.
As times are becoming more uncertain, especially off the back of a global pandemic, merchants are craving more stability, and fluctuating fees are not cutting it anymore.

Cost control is listed as one of the most important considerations when developing a business case for a new payment method:

  • 36% say they factor in the direct cost of the payment method, such as fees charged by the payment provider. This figure grows to 44% in Norway and 47% in Sweden.

  • 34% say they rank the indirect costs, such as support costs and reconciliation, of a payment method as an important requirement. This spikes to 45% in Sweden and 53% in Norway.

European merchants are reluctant to rely on card payments for cross-border transactions because it is such a complex and challenging task. In contrast, and as a response, Open Banking Payments as designed by Trustly are designed to help European merchants take back control of their payments operations.

Open Banking Payments offer European merchants an all-in-one price rather than variable-fee structure associated with card payments. They also make instant refunds possible to help reduce costs associated with customer support and avoid fraud risks associated with card payments.

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 eCommerce, Financial Services, Gaming and Travel. 

  • e-commerce