Trustly and food delivery service foodora have teamed up to allow foodora’s customers to pay directly from their bank account, with no need for a credit or debit card.
This new open banking payments solution will be launched in Finland and then expanded to Norway, Sweden, the Czech Republic and Austria, the companies said in a Tuesday (Aug. 20) press release.
“Trustly’s technology offers a seamless alternative to traditional card payments, which not only improves the efficiency of transactions for our customers but also has the potential to increase conversion for our partners,” Herbert Haas, chief international officer Europe at foodora, said in the release.
This option provides consumers with a payment process that is quicker, smoother and hassle-free, according to the release.
For restaurants and shops that partner with foodora, the payment solution delivers quicker payment processing, increased conversions, reduced fraud and the ability to remit instant customer payouts for refunds or reimbursements, the release said.
Data is encrypted in transit, and customer banking details are never stored, per the release.
“Our technology is designed to make online payments as simple and secure as possible,” Trustly Chief Revenue Officer Jussi Lindberg said in the release. “By partnering with foodora, we aim to enhance the payment experience for both customers and vendors, driving higher conversion rates and customer satisfaction.”
Open banking payments stand on the verge of widespread acceptance, with younger and affluent consumers driving the trend, according to the PYMNTS Intelligence and Trustly collaboration, “Consumer Sentiment About Open Banking Payments.”
While only 11% of U.S. adults used open banking payments in the past year, nearly 46% express strong interest in doing so, the report found. The younger generations — Generation Z and millennials — and high-income individuals earning over $100,000 annually are especially inclined to integrate this payment method into their routine transactions.
With Trustly’s ACH-focused model of open banking at retail, consumers don’t have to enter their information more than once, as they leverage bank logins and passwords to engage in transactions, Christina Potter, head of eCommerce at Trustly, told PYMNTS in an interview posted in July.
“You can set it and forget it,” Potter said, adding that “consumers don’t have to worry about card expiration dates or new card numbers.”
The post Foodora to Offer Pay by Bank Option Powered by Trustly appeared first on PYMNTS.com.
