Trustly and Cross River Bank have expanded their collaboration in instant payments to include the FedNow® Service.
With this addition, Trustly’s merchants will benefit from new capabilities to optimize the routing of funds instantly via Cross River’s application programming interface (API) endpoint, the companies said in a Thursday (April 4) press release emailed to PYMNTS.
“With Cross River, we are thrilled to pioneer FedNow transactions, marking yet another milestone in our journey to revolutionize account-to-account payments,” Alexandre Gonthier, CEO of Trustly, said in the release. “With FedNow, we continue to advance open banking payments, giving consumers the freedom and option to use their bank accounts as the centers of commerce.”
Trustly’s digital account-to-account platform serves 8,300 merchants, connecting them with 650 million consumers and 12,000 banks in more than 30 countries, according to the release. It enables payments directly from online bank accounts and handles the entire process.
Cross River provides technology infrastructure that delivers embedded payments, cards and lending solutions to millions of consumers and businesses, the release said.
With their expanded collaboration now including the FedNow Service, the companies can offer enhanced bank coverage and greater accessibility and efficiency of instant payments, per the release. That option is offered alongside their existing RTP® service, so they can leverage both and ensure uninterrupted payment processing.
“Together, we have demonstrated that responsible innovation created a paradigm shift through our proprietary network interoperability and singular endpoint,” Gilles Gade, founder and CEO of Cross River, said in the release.
PYMNTS Intelligence has found that 11% of consumers used open banking payments in the past year, and that the more they use this payment method, the more they like it.
Among consumers who used open banking payments at least 15 times in the last year, 82% said they are very or extremely satisfied with the payment method, according to “Consumer Sentiment About Open Banking Payments,” a PYMNTS Intelligence and Trustly collaboration.
Banks are embracing faster payments in an effort to make their engagement with consumers as frictionless as possible, Eric Foust, vice president of banking partnerships at Trustly, told PYMNTS in an interview posted in March.
Payments rails like RTP and the FedNow Service “don’t go to sleep … during bank holidays or on the weekend,” Foust said.