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Trustly announces acquisition of Ecospend with FCA approval

Friday 27 January 2023 14:49 CET | News

Global payments platform for digital A2A transactions, Trustly, has announced it acquired UK-based Open Banking payments platform Ecospend, following FCA approval.

The closing of the acquisition turns Trustly and Ecospend the biggest Open Banking payments company in the UK, connecting with over 80 banks and a consumer reach of approximately 50 million customers.

A2A on the rise in the UK

Account-to-account (A2A) transactions are on the rise across Europe, with UK being one of the region’s most rapidly growing markets, as well as the preferred playground for Trustly. 

Ecospend provides strong UK Payment Initiation Services and Data Services, including identity verification solutions and full UK bank connectivity, while Trustly delivers collection capabilities with a cross-border reach. Combined, the two companies aim to deliver an enhanced product, accelerating the adoption of A2A payments across the UK and in the rest of Europe.

The strategic acquisition of Ecospend will allow Trustly to have access to over 80 banks in the UK and benefit from strong payments volume of over GBP 7.5 billion in the UK.

According to C-level officials of Ecospend, the UK is currently the largest digital payments market in the continent and both businesses and end-consumers are eager to adopt Open Banking as a simple and secure payment method, as opposed to more traditional payment methods, including debit and credit cards.

Global payments platform for digital A2A transactions, Trustly, has announced it acquired UK-based Open Banking payments platform Ecospend, following FCA approval.

About the companies

Founded in 2017, Ecospend is an FCA regulated pay-by-bank payments provider, aiming to boost the overall acceptance of A2A payments and provide high-quality solutions for its customers. The company serves clients across various industries and holds a contract with the tax authority of the UK government, HMRC. Its proprietary technology is divided into main areas: payments services (pay-by-bank) and data services and benefits from full API bank connectivity.

At the same time, Trustly was founded in 2008, and is one of the veteran companies in the field of Online Banking payments. Its digital account-to-account (A2A) platform transforms payments into simple, secure, and fast transactions, linking some of the most popular brands worldwide with consumers, directly from their online banking accounts.

Trustly delivers tailored solutions and handles the entire payment journey, from account setup and verification, to checkout, with lower costs than traditional card networks. It serves over 8,100 merchants and connects them with little over 525 million customers and 6,300 banks across 30 countries worldwide. 

Moreover, the company is a licensed Payment Institution under PSD2 and operates under the supervision of the Swedish Financial Supervisory Authority in Europe. 


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Keywords: acquisition, account-to-account payment, digital banking, FCA, regulation, regulatory sandbox, online payments, bank transfer, credit card, debit card, card scheme, cross-border payments, Open Banking, Open Banking payments
Categories: Banking & Fintech
Companies: Ecospend, FCA, Trustly
Countries: United Kingdom
This article is part of category

Banking & Fintech

Ecospend

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FCA

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Trustly

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