Trustly launches AI-driven recurring payments solution

Open Banking payments provider Trustly has launched an AI-enabled recurring payments solution that is designed to improve how merchants handle repeat or subscription payments through a single integration.

The new pan-European solution, ‘Trustly Recurring Payments’, allows businesses to accept recurring transactions directly from the bank accounts of customers, thereby minimising churn rates and payment failures.

It is available in France, the Netherlands, Italy, Germany, the UK, Spain, and Sweden.

Trustly said that ‘Recurring Payments’ expands upon the capabilities of ‘Azura’, its proprietary data engine, which has already improved sign-up processes, security measures, and fund collection efficiency.

According to Trustly, the 8% churn rate among legacy methods such as direct debit and card set-ups are as a result of card expirations and insufficient funds, while 12% of set-ups fail due to errors in manual data entry.

With its new solution, Trustly intends to reduce the 50% abandonment rate at checkout, largely driven by consumers finding set-up too “cumbersome”.

The new solution can also predict optimal times for taking payment to reduce the likelihood of insufficient funds, using technology gained through Trustly’s acquisition of SlimPay.

Johan Tjärnberg, group chief executive officer of Trustly, (pictured) said: “We are leveraging AI and big data to transform the recurring payments landscape, ensuring transactions are timely and aligned with user preferences to minimise churn and increase lifetime value.

“My vision is for Trustly to become the leading next-generation payment platform, enhancing security and user experience with real-time data and outperforming traditional payment methods. We are making significant strides towards empowering merchants, simplifying payments, and reducing uncertainties.”