Open Banking is a true global phenomenon
Open Banking is great for both merchants who can benefit from higher conversion, lower fraud, and fast-settling debit transactions. For consumers, it offers an improved customer experience when transacting online and less risk of fraud. Open Banking is supporting businesses like Trustly to go well beyond the core API functionality and create products built around instant payouts and instant refunds to drive revenue. It also opens the path to further innovation and modernization of payments.
Optimizing account-to-account globally
Open Banking APIs differ country-by-country, even bank-by-bank. Hence, settlement timing, customer experience and risk factors all need to be considered. Trustly is actively optimizing payments while considering these factors, allowing for merchants to offer a great customer experience coupled with low risk and an instant payments offering. As the global leader in Open Banking Payments we’ll continue to expand our presence as Open Banking becomes more prevalent in more and more markets.
Many different businesses benefit from instant refunds and payouts
In the last 12 months alone, 50% of shoppers have requested a refund for clothing and accessory purchases. These refunds can be substantial amounts – 25% of them between £50 and £250. Slow refunds can cause major cash flow challenges and negatively affect a store’s reputation. On top of this, 38% of 18-24 year olds could not pay for bills because of a delayed refund and 45% of all respondents said slow refunds make it hard to plan financially. Trustly’s instant payments and refunds will help deliver a better customer experience, reduce support costs and drive loyalty with 60% of respondents saying they would prefer merchants offering instant refunds.
For Financial Services platforms, instant payouts is a key differentiator in increasingly competitive markets where incumbents and new Fintechs outfits are aggressively competing for customers. For example, 68% of customers on investment platforms would deposit more funds if they could withdraw instantly. And, 72% of insurance customers see the time taken to receive their claim as affecting their selection of insurer.
Not only can Trustly deliver instant payouts to customers, we can also generate efficiencies by reducing support calls, automating the collection of bank account details and initiating payments via the API.
Meeting local preferences with cross-border payments
More and more, consumers around the world are opting to pay via Open Banking Payments. In Europe alone, 29% of all Europeans will be seeking to pay with this option by 2027. In Sweden they’re already a must-have with 27% of consumers preferring to pay with Trustly While in FInland a staggering 64% of consumers use, and want to use, Open Banking Payments. We can expect to see this must-have status come to the fore in the UK by 2022.
In businesses where customer acquisition is key, for instance E-com and Financial Services, not meeting the demands for this payment preference could lose you much-needed revenue.
Merchants optimizing for local payment methods must ensure they don't end up with serious operational challenges with multiple providers. Choosing a provider who’s able to deliver seamless cross-border payments with simple reconciliation and settlement would be way more beneficial. Trustly is able to meet these demands with its unique intra-bank network and dozens of Payment Service Provider integrations.
Interested in more Trustly Money20/20 content? Watch Open Banking expert and our CEO, Oscar Berglund, answer some questions around the event and Open Banking in general.