Trustly PSD2 update: Spring 2021

Here's our regular update of the PSD2 state of play in the first half of 2021. This is an evolving topic that we will continue to address on an ongoing basis. 


Key takeaways:

  • PSD2 sets the framework for Online Banking APIs in the EU
  • The European banks' rollout of APIs is still a work in progress
  • Trustly provides a pragmatic approach in this period of transition
  • With a flexible approach, operators can ensure a superior CX 


Download this PDF for a breakdown of our payout speed in markets across Europe as of June 2021.

Operators in the EU are probably well aware of the EU’s Payment Service Directive 2 (PSD2) regulation. Now in full effect, PSD2 provides a legal framework for Online Banking Payments (also referred to as Open Banking Payments). 

PSD2 requires that all EU banks use standardized APIs, which makes it possible for licensed fintech vendors like Trustly to initiate payments for all EU bank customers, as well as providing other value added services. The API standardization is making Open Banking more widely available and more consistent for consumers across the UK and the EU.


The bank APIs are still a work in progress

Each bank is responsible for its own development plan and the rollout of PSD2-compliant APIs. As of the time of publication (May 2021), a number of banks are still in the process of perfecting their APIs, which means more time is needed before those APIs are robust enough to rely on. 

That means a lot of headaches for payment service vendors and API-integrators, which today rely solely on the APIs for payment initiation. Merchants who use these services face risks of less than optimal customer experiences as well as loss of revenues due to glitches or API-downtime. 

When a player can't make their deposit as desired, that's bad for user experience, bad for conversion, and bad for customer service –– and that's all bad for the bottom line.

During this transitional period, Trustly is taking an agile approach in our support of operators. We're dedicated to ensuring players can get in the game with a seamless experience, regardless of their location or bank.


Trustly is in control of our API journey

In order to offer a consistent user experience to the widest range of customers, it is preferable to work with a full-service provider like Trustly that is able to integrate using various payment initiation methods.

We offer all the PSD2 APIs — if they are available and good enough. We also have our own integrations that are very useful in cases where the PSD2 APIs are not available or not converting properly. 

In some Tier 1 markets, like our home base of Sweden and the UK (where OBIE has facilitated some of the best APIs on the market), we have been able to successfully move our transaction volume over to the bank APIs. In markets where PSD2 APIs have not matured to a level where we can rely on them, we have the flexibility to use our proprietary integrations. 

So, with our comprehensive approach and bank coverage, we ensure that the users of our product get the best experience, regardless of their bank. This gives operators the peace of mind that players can always complete their deposit.

We focus not only on providing a payment experience with versatile connection endpoints, but also an experience that offers some degree of customization relevant to local regulation. 

This flexibility helps operators ensure a future-proof solution as technology and regulation evolves. At Trustly, we're dedicated to supporting merchants in this period of transition and beyond with the most flexible and reliable solutions available. 


Related articles

Winning with Open Banking Payments in the UK

As consumer awareness and adoption of Open Banking Payments is booming, Trustly is helping operators provide players a winning customer experience in the UK.

Read more

Tales of Pay N Play®: The origin story

In part one of our ongoing series on the story of Pay N Play®, we look at the inspiration for this groundbreaking solution.

Read more

Webinar on demand: Scan N Play

How can land-based operators join the cashless payments revolution? Watch this pre-recorded webinar with Trustly's Sam Milton to find out.

Read more