In this interview, we speak with Zainab Hussain, an expert in e-commerce strategy and operations management, as she sheds light on the impressive financial results and strategic advancements of Trustly in 2024. Trustly has emerged as a leader in digital payments, particularly in the Pay by Bank solutions landscape, showcasing remarkable growth in European and North American markets.
Can you give us an overview of Trustly’s financial performance in 2024?
Trustly reported a very strong year in 2024, with a total payment value (TPV) of $87 billion, which represents a significant 54% increase compared to the previous year. The net revenue climbed by 32% to $239 million, while the adjusted EBITDA saw a remarkable 50% rise, reaching $73.2 million. This performance is a testament to the company’s scalable business model and its ability to deliver customer-centric solutions efficiently.
Trustly’s TPV increased by 54% in 2024. What factors contributed to this growth?
Several key factors fueled this growth. Notably, Trustly’s expansion in both Europe and North America—regions that are experiencing a surge in digital payment adoption—played a significant role. In North America, collaborations with leading financial and gaming companies, along with the expansion of innovative payment solutions, helped drive a remarkable increase in transaction volumes. In Europe, the growth was supported by an increasing merchant base and strategic innovations like their AI-powered recurring payments solution.
What were the notable collaborations and partnerships that supported Trustly’s success in North America?
Trustly has developed successful partnerships with major players like BNY’s Bankify, Newline by Fifth Third, Coinbase, IGT, Light and Wonder, and expanded its operations with Cross River Bank. These alliances enabled Trustly to leverage the RTP network and FedNow to provide more efficient and reliable payment processing solutions, boosting their standing in the North American market significantly.
How has Trustly expanded its partnership with Cross River Bank, and what impact has this had on your operations?
By integrating FedNow with the existing Real-Time Payments network through Cross River Bank, Trustly was able to enhance its service offerings in North America. This expansion allowed the company to process real-time payments more effectively, providing a seamless and quick payment experience for businesses and consumers alike, helping mitigate common transactional challenges such as non-sufficient funds and fraud.
Can you explain the role of Trustly’s advanced risk engine in your North American growth?
Trustly’s advanced risk engine has been pivotal for their success in North America by securing payments at scale. This sophisticated technology targets and reduces incidents of non-sufficient funds, fraud, and chargebacks, which are crucial in maintaining trust and reliability among merchants and end customers. This confidence in secure transactions directly correlates to more transactions being processed, contributing solidly to growth.
What innovations and strategies drove Trustly’s growth in Europe in 2024?
In Europe, Trustly benefited from increasing transaction volumes and a continual addition of new merchants across various sectors. The introduction of its AI-powered recurring payments solution also played a prominent role by simplifying the repeat transaction process, thus allowing businesses to minimize involuntary churn and optimize revenue retention. Strategic wins in the public sector, such as retaining the HMRC contract, also underscored Trustly’s influence.
How has Trustly’s AI-powered recurring payments solution impacted merchants and consumers?
This innovative solution streamlined the payment process for recurring transactions, making it easier for merchants to handle repeat payments and reduce issues like payment failures and involuntary churn. For consumers, it means a smoother payment experience without disruptions, ultimately fostering customer loyalty and allowing businesses to capture more revenue.
What common issues does the AI-powered recurring payments solution address, and how does it benefit merchants?
The AI-powered solution addresses challenges such as payment failures and involuntary churn, common hurdles in handling recurring payments. By providing a reliable mechanism for repeat transactions directly from bank accounts, merchants benefit from reduced churning rates and higher revenue retention, while consumers enjoy uninterrupted service.
Can you explain how Azura, Trustly’s proprietary data engine, enhances consumer recognition?
Azura is critical in optimizing consumer interactions by triangulating massive data points from merchants, users, and banks, enabling seamless consumer recognition across different devices and platforms. This enhanced recognition allows Trustly to deliver personalized and frictionless experiences, which can significantly improve customer engagement and satisfaction.
What results have you seen from Azura’s implementation in terms of consumer behavior and conversion rates?
With Azura’s implementation, Trustly observed an increase in consumer spending at checkout and significantly improved shopping conversion rates. These results indicate a shift in consumer behavior towards higher engagement on Trustly-enabled platforms, showing the effectiveness of Azura’s data-driven insights in boosting transactional efficiency.
How has Trustly succeeded in the public sector, specifically with the HMRC contract in the UK?
Trustly’s work with the HMRC in the UK has proven successful by maintaining a pivotal open banking mandate and demonstrating the company’s capability in handling large-scale transactions efficiently. This engagement not only strengthens Trustly’s position as a leader in public sector payment solutions but also illustrates its operational reliability and adaptability.
How significant was the increase in HMRC payments processed by Trustly, and what does it mean for your open banking mandate?
In January 2025, Trustly processed 1.3 million payments for HMRC, amounting to £4.7 billion, which is a 32% increase compared to the previous year. This increase underscores Trustly’s prominence in open banking and highlights its importance in supporting reliable and efficient public sector transactions across the UK.
According to Johan Tjärnberg, 2024 was a defining year for Trustly. Could you elaborate on what made it so significant?
2024 stands out as a defining year due to Trustly’s impressive financial achievements and successful geographic and vertical expansions. The launch of the AI-powered recurring payments solution and substantial advancements with Azura played a key role in transforming the payment experience for merchants and consumers, underscoring Trustly’s innovation and market leadership.
How does Trustly’s successful increase in net revenue and adjusted EBITDA reflect its business model and scalability?
The substantial uptick in net revenue and adjusted EBITDA illustrates Trustly’s robust and adaptable business model. These financial gains demonstrate scalability and operational strength, allowing Trustly to meet market demands efficiently while maintaining profitability, reinforcing consumer confidence, and expanding its market footprint effectively.
In what ways do strategic partnerships play a critical role in Trustly’s success in Europe and North America?
Strategic partnerships have been instrumental in facilitating Trustly’s growth by allowing cross-collaboration with leading financial institutions and key industry players. These alliances have boosted their service reach, enhanced their product offerings, especially in realtime transactions, and helped fortify their position as a leader in the digital payments ecosystem.
What are Trustly’s plans moving forward to maintain its position as a key player in the digital payments ecosystem?
Moving forward, Trustly is likely to focus on further innovation in payment solutions, especially those powered by AI, while expanding their partnerships in new and existing regions. By maintaining a consumer and merchant-centric approach, the company will look to reinforce its reliability and scalability in the digital payments landscape for sustained success.
How long has Trustly been backed by Nordic Capital, and who are the other major investors?
Trustly has had the backing of Nordic Capital since 2018. Alongside Nordic Capital, other major investors include BlackRock, Alfvén & Didrikson, and Neuberger Berman, all of whom play a significant role in supporting Trustly’s mission and growth ambitions.
Do you have any advice for our readers?
Stay informed about evolving fintech trends and be open to integrating innovative payment solutions. As digital payments continue to shape the future of commerce, embracing these technologies can offer significant competitive advantages, enhance customer experiences, and drive business growth.
