Following a decade of success in Europe providing its Instant Payouts offering to bank accounts, Swedish FinTech company Trustly on Monday (Sept. 20) announced the expansion of its service in the U.S.
In collaboration with Cross River Bank, the company’s platform enables various U.S. businesses – including trading companies, insurance companies, sports betting platforms and retailers – to offer their U.S. customers near-instant payments to their bank accounts, according to Trustly.
The U.S. launch was made possible by Cross River’s efforts in the RTP® network, a new API-based, real-time payments platform. Businesses using Trustly’s Instant Payouts can secure payments directly with Cross River. The bank will send RTP payments on behalf of these businesses to their customers’ bank accounts at other RTP participants.
Trustly, which was founded in 2008, processes payments for 8,100 merchants, connecting them with 525 million customers and 6,300 banks in more than 30 countries. In 2020, the payments provider processed more than $21 billion in transactions.
The push for real-time payments is driving banking innovations industrywide. Last week, BNY Mellon and Citi joined with Verizon to offer the ability to send request-for-payment messages to Citi banking customers, as PYMNTS reported. The collaborative effort also allows Verizon customers with Citibank accounts to pay their bills instantly via BNY Mellon’s e-bills and payments component and to schedule payments.
Read more: BNY Mellon, Citi and Verizon Debut Request-for-Payment Service
The ability to send and schedule instant payments is becoming increasingly important, and a common expectation among many people looking to simplify the traditional process of writing out checks for various bills each month.
In response to the drive for more instantaneous transactions, the Federal Reserve is preparing to launch FedNow, an instant payments service, with a tentative debut of 2023. According to PYMNTS, customers pay two-thirds of their bills through one-off transactions, despite the ease of setting up recurring bill payments. Businesses and consumers alike are already embracing real-time payment solutions. The Clearing House’s Real-Time Payments service is used by more than 100 FIs, ranging from small banks to large branches such as Bank of America, Bank of New York Mellon and J.P. Morgan Chase.
See also: FedNow Follows TCH to Enable Instant Bill Pay
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