Tuesday, June 25, 2024

Trustly Announces Robust 2023 Growth: H2 Surge in Open Banking Demand and Innovations Drive Record Financial Performance

Trustly, the global market leader in open banking payments, today releases its annual report for 2023 demonstrating robust growth and a significant increase in demand for its account-to-account technology.

The year’s success follows the implementation of a transformative strategy in 2023, designed to conquer the continental European market and expand into recurring payments. With reported revenues reaching $265 million (SEK 2,682 million), this growth accelerated notably in the second half of the year, increasing by 27% compared to H2 2022. Furthermore, the transaction volume saw a substantial increase, growing by 48% over the same period.

The total transaction value processed during 2023 was $58 billion (SEK 595 billion), reflecting an increase of 79% YoY. This drove a 51% increase in operating profit with an adjusted EBITDA of $51 million (SEK 515 million), up from $33 million (SEK 340 million) in 2022.

In 2023, to bolster investments in innovation and strategic acquisitions, Trustly carried out a capital injection of $156 million (SEK 1,581 million). This catered for a notable change in user behaviour, characterised by an increase in transaction frequency and volume, underscoring an inflection point in market dynamics driven by a strong consumer preference for open banking technology.

To aid further transformation, the company made extensive investments in Europe where markets have shown considerable improvement during the second half of the year. Solidifying its status as a global leader in open banking, Trustly has expanded its offerings by acquiring two key businesses. These acquisitions added new verticals and enhanced product capabilities, with Ecospend specialising in the UK and SlimPay in recurring payments across continental Europe.

These results indicate a significant shift in payment performance and underscore Trustly’s advantages in cost and fraud prevention, along with robust conversion rates achieved through Azura. With the market’s massive potential and these favourable conditions, Trustly is ideally positioned to capitalise on these trends as it plans to further strengthen its presence in key markets.

Johan Tjärnberg, Group CEO of Trustly, states: “We’re committed to redefining the way people pay – and we’re thrilled that our annual report clearly demonstrates our progress. Millions of people all over the world are now transacting with us, and our robust transaction numbers reinforce our leadership in pioneering open banking across Europe and the US. Change is on the horizon, and Trustly is at the forefront, ready to lead the charge.”

Trustly is a private company, with Nordic Capital as its leading investor since 2018, and is further supported by other institutional investors including BlackRock and Neuberger Berman.

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