20 July, 2021 | JUL AUG 2021

The Open Banking Boom

Trustly’s Liam Colclough discusses the current payments landscape in the UK and beyond, and the rapid growth of Open Banking

Cards still dominate the payments landscape in the UK, but will they continue to do so in the next couple of years?

While most players in the UK prefer to deposit with their bank card, as more British consumers discover Open Banking, the balance is sure to shift.

Open Banking gives consumers the ability to pay merchants via account-to-account online banking transfers. The newly standardized British Open Banking APIs that make these payments possible are now some of the most robust in the world.

This means that every account holder with the major British banks now has access to consistently secure and easy-to-use Open Banking Payment options.

According to data from the Open Banking Implementation Entity (OBIE) published in January 2021, over 2.5 million UK bank customers have connected their accounts to trusted third-party payment providers like Trustly – and those numbers continue to increase every day.

 

How are the requirements for Strong Consumer Authentication (SCA) impacting the growth of Open Banking in the UK?

Today’s players expect a convenient deposit experience. We believe that SCA requirements will push even more players away from cards.

SCA is now required for all online payments in the EU and UK. SCA has always been a native part of the Trustly deposit flow, so we have not needed to adjust anything.

However, players who have always deposited with cards now face new (and often unexpected) friction. First, you have to enter the card details, then you need to perform two-factor authentication (2FA).

To perform 2FA, players in the UK can now use biometrics such as fingerprint and face ID via their bank app, which is a great step forward. But if you’re making a card deposit, you need your card and your phone at hand, even if you are playing on your computer.

With Open Banking Payments like Trustly, the deposit flow is seamless, account details are entered automatically, and the 2FA can be completed in an instant. We’ve optimised the mobile-to-desktop handover, so you can use the biometrics on your phone and then start playing on the computer in a flash.

While SCA compliance may still be a low priority for some merchants, implementation can’t be delayed forever. By offering and promoting Open Banking Payment options, operators can mitigate the risk of deposit abandonment and introduce players to a new, easier way to deposit. 

 

What is the strategy behind the partnership with Premier League football club West Ham? What are you aiming for with this deal, and how are you benefitting from it?

Last February, we were proud to announce that Trustly is now the Official Open Banking Partner of the West Ham United Football Club. Throughout our multi-year partnership, the Trustly logo will be displayed on the LED perimeter advertising system that surrounds the pitch at London Stadium. 

Trustly is committed to building stronger bonds with sports fans in 2021, and our partnership with this leading Premier League club is catching the attention of millions across the UK, and the world. This increased visibility is already strengthening recognition of our logo in operators’ cashiers.

 

How much potential is there for Trustly in the North American market?

Today, Trustly provides merchants access to millions of consumers across North America. The US is our fastest-growing market, and we see massive potential with the merchants we work with, not only in the online video gaming (OVG) and iGaming industries, but also with e-commerce, financial services and travel businesses.

Canada recently passed a bill legalizing single-game sports betting, a very positive first step towards wider regulation of the industry. When it comes to online iGaming in the US, the regulatory landscape is quite complex, as it is up to each state to set its own rules. Just as we help operators across Europe with KYC, AML and other regulatory challenges, we’re focused on supporting the North American market with a flexible and future-proof solution.