Swedish fintech Trustly is merging with Silicon Valley-based PayWithMyBank to create a transatlantic payment network for consumers to pay for online shopping direct from their bank accounts rather than with cards.
Together, Trustly and PayWithMyBank will enable merchants with a global footprint to accept online banking payments from European and US consumers.
Trustly currently offers cross-border payments to and from consumer bank accounts at over 3000 banks in 29 European markets, while PayWithMyBank enables merchants to offer consumer payments by signing into online banking at the point-of-sale, bypassing the credit card networks.
Oscar Berglund, CEO of Trustly, says: “This transformative merger creates the first and only online banking payments network with transatlantic coverage and accelerates our path towards global coverage. Together we’re thrilled to be able to offer merchants and billers a unique alternative to card payments, allowing them to accept payments from 600 million consumers across Europe and the US.”
Trustly holds merchant funds and is a licensed payment institution in Sweden, while PayWithMyBank does not hold any merchant funds. The merged group had revenues in excess of EUR100 million in the calendar year of 2018.
Financial terms of the deal were not disclosed.
Editorial | what does this mean?