EBA’s new rules mean even simpler payments with Trustly

A recent ruling by the European Banking Authority on Secure Customer Authentication (SCA) has paved the way to create an even simpler payment journey for millions of European customers. There will now be fewer obstacles to authenticate payments, meaning that biometrics can be used to a greater degree than they were before. Trustly plans to offer new pathways for people to play in online casinos or purchase goods.

It is hoped that this new announcement by the European Banking Authority will ensure that more customers have a seamless payment experience through new measures that Trustly is introducing like the removal of any need for manual data entry and a seamless flow between Trustly and the customer’s bank.

Strong customer authentication with Trustly Pay n Play

Some of the new features that Trustly are looking at include the ability to pay with one fingerprint. This means that customers will only need to authenticate a payment once with Trustly. Banks will not be able to ask someone to ‘log-in’ elsewhere in order to confirm the payment. This also relates to another of Trustly’s aims which is to offer a simple and frictionless payment experience, as confirmed by the latest customer satisfaction survey in the trading industry.

Their belief is that the customer experience cannot have unnecessary steps or friction. Banks will not be able to add unnecessary and convoluted new steps to the payment process – such as additional information, confirmations, warnings, or redirections to multiple pages between Trustly and the bank’s own app.

The EBA’s decision also means that if a bank’s app supports payments through biometrics, such as a fingerprint or face-ID, they must allow Trustly to use that app for authentication. The customer journey between Trustly and the bank needs to be seamless and customers should be passed back easily after authentication.

The major benefit of these changes is a better user experience for customers and an improved checkout conversion for merchants. However, application programming interfaces (APIs) are still not a complete payment solution. Merchants still need a refund (or pay-out) solution and reconciliation services. Some transactions will still fail to settle, merchants will need a solution with a risk system, and payment settlement speed is not improved.

This news also comes amidst an announcement that Trustly plans to introduce cashless payments to the land-based casino market.

Trustly has played a major part in bringing these changes about

Trustly was undoubtedly thrilled to hear the news from the European Banking Authority and revealed that it has been engaged in a lengthy dialogue between both European and national regulators for many years.

CEO Oscar Berglund has campaigned for many of these new changes since the European Commission issued a draft in 2013 and was the Co-chair of the API Evolution Group in 2018. The group was originally created by the European Commission to evaluate bank APIs and was observed by the EBA, the Commission and the European Central Bank (ECB).

Trustly has also given feedback to eleven national regulators on the performance of bank APIs, offered national regulators insights on other countries implementations, and tested over eighty bank APIs in Europe.