Global pay platform Trustly, which works on account-to-account (A2A) transactions, has bought open banking platform Ecospend as a way for Trustly to breach a huge market for its services in the U.K., a press release from Trustly says.
By buying Ecospend, Trustly will gain access to the A2A product and full bank connectivity.
The market, according to a press release, will offer a “dynamic ecosystem” and will have well-accelerating consumer adoption and strong transaction volume growth.
No financial details of the deal were disclosed, the press release says.
Trustly CEO Johan Tjärnberg has said the companies will be a good fit because of the ability to “deliver a market-leading product in the U.K., allowing us to capture opportunities and accelerate our current U.K. expansion.”
Meanwhile, Metin Erkman, Ecospend founder, said the goal was to “further accelerate our expansion in the U.K. and continue to raise the bar for service excellence to our customers.”
“We will continue to leverage our market-leading technology and bank connectivity in the U.K. and, together with Trustly, broaden our capabilities to stretch across Europe and further markets,” he said. “We are really excited to join the Trustly family.”
Ecospend was founded in 2017 and serves various industries, including public sector, in which the company has a contract with U.K. tax authority HMRC as of March of 2021.
Trustly has also recently partnered with Vroom Delivery, the convenience industry eCommerce platform, PYMNTS wrote.
Read on: Vroom Delivery, Trustly Team to Allow Open Banking Payments for Online Customers
This partnership will let customers pay with their bank accounts while ordering online.
The stated purpose is to curb the processing fees paid to credit card networks, which the report says will be slashed by over half.
Vroom customers will be able to pay with their bank accounts, without having to have account or routing numbers, instead of using a credit or debit card, downloading an app or making a whole new account.
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