In a major leap for subscription services, Trustly, the global leader in open banking payments, today unveiled its innovative AI-powered recurring payments solution poised to revolutionise how merchants handle repeat transactions through a single integration.
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.
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 50% 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.
Combining Direct Debit, account-to-account transfers, and Trustly’s Azura engine, the new solution offers an unmatched experience for the end user. In enhances convenience, security, and reliability, optimising customer acquisition and satisfaction across Europe’s largest markets. Trustly - renowned for pioneering payment solutions for over 15 years and a trusted partner to companies like AT&T and Verizon - continues to leverage data to drive high conversion and retention rates.
Trustly Recurring Payments is a pan-European solution equipped with unparalleled local expertise, available through a single API from one platform. 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.
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.”
Trustly Recurring Payment is available in France, the Netherlands, Italy, Germany, the United Kingdom, Spain, and Sweden. 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.