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Skip the Web Wallet with Trustly
Trustly, Inc. was launched in 2008 with headquarters in Stockholm, Sweden, to provide individual users the ability to make online purchases directly from their bank account securely. Today, Trustly, Inc. is the US division of the Trustly Group, a licensed Payment Institution operating with the Swedish Financial Supervisory Authority's supervision under PSD2 – the secondary payment services directive in Europe. In the US, it serves target markets under state regulations.
About Banks and Bank Transfers
In the past, banks existed to safely hold customers' cash and loan deposited funds to other customers at an interest rate that provided income to keep the bank solvent. Bank checks allowed customers to pay businesses and individuals across the globe, with the paper checks eventually making their way to processing centers or Federal Reserve Banks where they were totaled and returned to the issuing banks.
Other instruments like the Bank AmeriCard were introduced for payments to replace checks to save customers from the trouble of writing checks. Afterward, Visa and MasterCard became synonymous with paying for goods and services – with a monthly payment due and an interest payment charged if the total outstanding wasn’t met upon billing.
In the 1980s, ATMs – Automatic Teller Machines – were introduced with debit cards so bank account holders could get cash 24-hours a day and pay for those same goods and services their parents did with checks. Card issuers – debit and credit – charge the receiver a fee for allowing their customer to make a purchase, and those fees cause an increase in the cost of the purchased goods.
Next came web wallets like Neteller, so Internet buyers could pay for items on the web and make deposits into a casino and other sites instantly. Skrill and other wallets like PayPal allow users to “hold” cash in their account and access it online and with physical cards at ATMs.
Enter Bank Transfers
Another popular form of moving money from a bank to a recipient is via bank transfer. A transfer is a bank-wire in many countries, where funds are sent quickly from one account to another. Unfortunately, the wires are expensive and often used only for substantial purchases like autos or homes. They also require the user's disclosure (sender) and the receiver's routing number, and bank account number.
Because of security concerns with giving strangers your account numbers, many people ignore bank transfers' ease and speed to guard their security.
Trust isn't a web wallet, and they don't provide an ATM card or any system to “hold” funds. They are a bank transfer service that allows users to move their banked assets (as a buyer) to a seller's bank quickly, efficiently, and safely.
The History of Trustly
Trustly Group was initially founded in Stockholm, Sweden, as Glue Finance by Lukas Grate, Joel Jakobsson, and Carl Wilson in 2008. The company signed contracts with internet retailers that year, proved their existence and efficiency, and launched a company profile to attract investors in 2009.
As revenues grew (more than 200% in two years), Glue added an office in Malta as more than a million retail and bank transactions were processed. In 2011, Alfven &Didrikson acquired 25% of the company.
In 2014, Trustly joined Groupon and PayPal in joint ventures to expand their base and improve profits. The moves were proven successful when the company reached 10 million transactions. The company’s successful operations convinced Bridgepoint Capital (BDC) to take a minority position in the business with a €23 million investment.
Online Gamers Rejoice
Trust has a business model that utilizes funds from internet users to internet subscription, services, and sales. In 2015, it secured contracts with a large number of gaming website operators to streamline the registration process so players using their new Pay N Play program to get to gaming faster and easier.
As they put it, the Pay N Play system combines gaming registration and deposit steps to increase conversion and better return on investment for suppliers. If you are a player, you’ll enjoy the instant withdrawals, which Trustly touts as having a higher new player retention rate than other operators.
Since Pay N Play allows operators to identify players when making deposits, operators meet their KYC requirements. Players get into action quickly by making a deposit directly through Trustly’s secure system to the gaming website. Even if they leave, they can return and withdraw their winnings instantly.
The Pay N Play program allows you as an online gamer to play in two styles offered by gaming sites, their Pure program, where Trustly is the registration and sole payment method, and a separate Hybrid program.
As a player in the Pure system, you’ll make your initial deposit and can return later to see your previous balance is still available. Withdrawals go right back to your bank without any additional information needed.
In the Hybrid, Trustly uses their usual system for deposits through your bank account and then into the gaming site. You'll have no “resume playing” feature, but the same quick deposit or withdrawal is still available.
The Pay N Play system is also available for a growing number of “No Account Casinos” where you get to play quickly with no registration. Just use Trustly’s Pay N Play and be gaming in instants!
After the rollout of Pay N Play, Trustly continued to grow exponentially, reaching a total of 800 online stores in late 2015 and surpassing 1.7 billion transactions in 2016.
The following year it was listed as one of Europe's Fastest-Growing Companies,” and the company was valued at more than €700 million. That prompted private equity fund Nordic Capital to take a majority stake in the business when it acquired 70% of the existing shares.
Trustly merged with the Silicon Valley online banking leader PayWithMyBank in June of 2019, enabling merchants with a global reach to accept online banking transactions from US and European consumers. The following year, Trustly received investments from other groups, including BlackRock, and saw its value grow to nearly $2 billion.
The following month, Trustly expanded into Canada and Australia with a determination to enter the Asia-Pacific region. The mergers and expansions allow Trustly to reach more than 600 million consumers via more than 6,000 merchants. Those merchants include some of the most popular businesses in the world, like Alibaba, AT&T, Dell, DraftKings, eBay, eToro, and so many more. You can even top up your PayPal account in many countries and send and receive money via TransferWise.
As a gamer, you've got the quickest deposit and withdrawal system in front of you with the click of a button. You also know as an online player that withdrawals often take a long time with certain gaming operators, and the Trustly business system gives them no reason to delay payment beyond the standard security check and approval.
Today, Oscar Berglund is Trustly’s CEO and resides near the company's headquarters in Sweden. The business employs more than 500 employees and in 2019 had revenue of $150 million, or 1.4 billion SEK.
Changing to Bank Transfers
There are several reasons that users are willing to change from a debit/credit card system to bank transfers. First, not everyone has a credit card or wants the intrusion of credit checks and security protocol to interfere with their complicated and busy lives.
There’s also the fear of using your account numbers with independent (read: unknown security) websites on a web of unknown sellers. So, web wallets and e-wallets made a move into the lives of many buyers in the last decade.
More recently, buyers have turned away from physical purchases due to social distancing measures and have embraced online purchases. For many of those people, they accepted the tried-and-true method of using debit and credit cards. Some moved forward to web wallets, but others still wanted something newer – something more straightforward and safer. That's where Trustly comes in and why the company has been increasing in size and value.
While bank transfers in the US and UK account for less than 10% of all online purchases and deposits, the percentage is much higher in other parts of the world. In the Netherlands, Sweden, Finland, and Norway, the numbers close in on 50%. It’s the same in Austria and Estonia, and Poland too.
Walking the streets at night might be dangerous, but using a credit card in stores and restaurants also carries the risk of card and ID theft. While online shopping is very safe on significant sites, there are still some unscrupulous places where your identity is at stake. That risk can be at the website itself or in parts of the processors handling their financial transactions. It's scary.
Again, that's where Trustly comes in, to keep you safe. When you use their system, you connect your data and bank account only with them – not with the website or the persons you are making purchases with. That's a big difference!
As a licensed payment institution, Trustly is authorized to provide all payment solutions encompassed by the payment services act within the EEA/EU as dictated by the Swedish Financial Supervisory Authority. They hold a European Payment Services Provider (PSP) license in attendance with Payment Services Directive 2007/64/EC.
Trust itself sets up business accounts with a wide range of banks in markets where it is active, allowing it to handle customers from hundreds of states and countries to perform direct bank transfers to process purchases and deposits.
Therefore, instead of making the actual transaction, you are enacting Trustly to provide a conduit for your money through their secure servers. Your purchases are as safe as your bank's online banking interface. Your bank routes the order through Trustly’s network to pay the merchant. Your information never reaches the other side of the transaction.
Because of this enhanced security system, Trustly has never experienced fraud issues often found with card payments. Trustly never stores details relating to transactions.
To keep you safe, Trustly uses two-factor authentication and the best encryption technology presently available with 2,084 – bit RSA encryption and multi-layer security systems.
Starting Your Trustly Account
Trustly doesn’t require a software installation or registration with a new account. There are no downloads. You need only a valid email address and a similarly valid bank account that you are authorized to make direct transactions.
You may be prompted for a copy of a physical photo ID at certain transaction thresholds. Your ID must be current and undamaged.
About Trustly Fees
When you set up your account, you'll get a verification email. Adding your mobile phone adds another layer of security to your account. If you have scheduled transactions, you'll receive a list of upcoming purchases, deposits, or withdrawals via email. Each transaction is numbered for easy reference.
Trustly handles many world currencies, including GBP, EUR, SEK, and USD, and more. Fees are 2.9% of the total transaction. Most of those transactions clear quickly – in minutes – although some may take longer.
Because Trustly is an established and trusted company, thousands of merchants and online casinos accept direct bank deposits through them to their websites. Those merchants and casinos will never receive any of your personal banking information. They get a transfer from Trustly.
For casino and bookie enthusiasts, the low fees charged by Trustly encourage gaming sites to discount or charge no fees for your deposits. That allows you to qualify for all types of New Player and Welcome bonuses that can make your gaming interaction more fun and much more profitable.
Likewise, your withdrawals are much cheaper than having a check drawn on your online site – and certainly much faster. Also, there are no lingering questions from your bank card (Visa, MasterCard) company about your online activity!