Trustly Launches AI-Powered Recurring Payments to Transform Subscription Services

In an advancement for subscription services, Trustly, a player in open banking payments, has introduced an AI-driven recurring payments solution. This new development is set to transform how merchants manage repeat transactions with a single integration.

This technology allows businesses to efficiently accept recurring transactions directly from customers’ bank accounts, bypassing the delays of traditional payment methods like cards. It addresses issues of involuntary churn rates and payment failures that have hindered the subscription economy, enabling businesses to capture and retain more revenue.

Trustly’s latest solution capitalises on the burgeoning subscription market, which is projected to reach $1.5 trillion by 2025. It offers a substantial improvement over traditional Direct Debit and Card setups used by millions across Europe. These older methods often struggle under high demand and varied consumer preferences, leading to an 8% churn due to card expirations and insufficient funds, and a further 12% of setups failing due to manual entry errors.

By automating the payment process, Trustly aims to significantly reduce the 50% abandonment rate at checkout, where users often find payment setups too complicated. This revolutionary technology builds on the capabilities of Trustly Azura, the company’s proprietary data engine, which has already improved 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 unparalleled experience for end users. It enhances convenience, security, and reliability, optimising customer acquisition and satisfaction across Europe’s largest markets. Trustly, known 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 unmatched local expertise, available through a single API from one platform. It significantly extends customer lifetime value by facilitating smoother recurring payment plans for services such as TV streaming and 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, thus 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, totalling $58 billion.