Member Exclusive, Payments

Trustly adds instant payouts to US offerings

  • Trustly's offering, in partnership with Cross River Bank, allows businesses to complete near-instant disbursement of funds through its platform.
  • Industries that can benefit from the offering include retail, marketplace, insurance, and sports betting companies, says Trustly.

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Trustly adds instant payouts to US offerings

Swedish fintech Trustly announced earlier this week that it has extended its product range in the US with the launch of Instant Payouts. Trustly, in partnership with Cross River Bank, will offer US businesses the ability to complete near-instant disbursement of funds through its platform. Businesses — including retail, marketplace, insurance, and sports betting companies — can use instant payouts to finish transactions faster and drive customer satisfaction.

Trustly’s proprietary technology platform enables instant payouts to bank accounts across currencies and geographies, with a network of 6300 connected banks in over 30 countries.

Alice Chen, vice president of product at Trustly, believes instant payouts will be rewarding for their merchant partners, by powering faster payout and hence improving customer satisfaction. “Traditionally, consumers have had to wait between 3 and 5 days to receive a payout, which is unacceptable in today's on-demand world,” she said.

The offering in the US is powered by Cross River Bank, and made possible by the bank’s participation in The Clearing House built real-time payment rail, the RTP network. The bank’s API-based platform connects directly with Trustly’s network and provides the backend technology to support instant communication with vendors, and process RTPs.

The instant payout system works by Cross River funding the payments to clients on behalf of businesses. The bank’s network-connected API enables it to send RTP payments on behalf of businesses to their customers’ bank accounts at other RTP participants. Trustly also offers a 24/7/365 withdrawal system for the product.

After a decade of operations in Europe, the firm is expanding in the US with this fresh release and expects real-time payments to drive growth stateside. It entered the US market by offering its primary product, instantaneous account-to-account transfer. “The US has quickly become one of Trustly's largest and fastest-growing markets,” Chen said.  “Q2 revenues in North America have increased by 481% year over year.”

Trustly is a Stockholm-based payments firm established in 2008, and a global player in digital account-to-account payments. The platform connects merchants directly with consumers’ online banking accounts and claims to redefine the speed, simplicity, and security of payments.

Trustly serves 8,100 merchants globally, connecting them with 525 million consumers. In 2020, the firm processed over $21 billion in transaction volume in its global network. The firm employs over 500 employees across Europe, North America, and Latin America.

Real-time payments are a fast-growing space, with several industry leaders and new specialized firms moving the market forward. Earlier this month, BNY Mellon and Citi joined Verizon to enable the telecommunications firm to send request-for-payment messages to Citi’s clients. In addition, Verizon customers using Citi can now pay their bills instantly via BNY Mellon. The Federal Reserve announced that the launch of FedNow is now planned for a 2023 release, with testing to begin this year. FedNow will enable customers to pay their bills instantly and businesses to send RFPs. 

Other players like TrueLayer and ClaimPay are also active in this space. TrueLayer offers its banking as a service to clients instant payouts to their customers. ClaimPay serves the insurance industry, allowing insurers to deliver instant claim payouts to a claimant.

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