Trustly today announced the launch of its new AI-powered recurring payments solution, aiming to streamline how merchants manage recurring transactions across Europe.

The new payment solution allows businesses to process recurring transactions directly from customer’s bank accounts, bypassing traditional card payments. This is intended to reduce the high rates of payment failures and involuntary churn that businesses often face. Traditional methods such as Direct Debit and card payments have struggled with issues like card expirations and manual entry errors, which can lead to an 8% churn rate and a 12% failure rate.

“We are leveraging AI and big data to transform the recurring payments landscape, ensuring transactions are timely and aligned with user preferences. This minimizes churn and increases lifetime value. Our goal is to become the leading next-generation payment platform, enhancing security and user experience with real-time data,” said Johan Tjärnberg, Group CEO of Trustly.

The new Trustly system automates the payment process, potentially reducing the 50% abandonment rate at checkout, where users often find payment setups cumbersome. The technology leverages Trustly Azura, the company’s proprietary data engine, to improve sign-up processes, enhance security measures, and increase fund collection efficiency.

The AI-powered solution combines Direct Debit, account-to-account transfers, and the capabilities of the Azura engine. This combination aims to improve convenience, security, and reliability for customers while also optimizing customer acquisition and satisfaction.

Trustly has been a prominent player in the payment solutions industry for over 15 years, with notable clients like AT&T and Verizon. The company’s new recurring payments solution is designed to work across Europe’s largest markets and is available through a single API.

Following its acquisition of SlimPay, Trustly’s technology can now predict optimal payment times, addressing issues related to insufficient funds. It also includes enhanced fraud prevention measures, such as biometric authorization and verified payment credentials, to ensure transaction security.

The Trustly Recurring Payment solution is available in France, the Netherlands, Italy, Germany, the United Kingdom, Spain, and Sweden. Trustly reported revenues of $265 million in 2023 and a 79% increase in transaction value, totaling $58 billion.

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Trustly’s solution is designed to cater to Europe’s largest markets, including France, the Netherlands, Italy, Germany, the United Kingdom, Spain, and Sweden. This broad geographical reach, combined with local expertise, positions Trustly to capitalize on the rapidly growing subscription market, projected to reach $1.5 trillion by 2025.

By addressing key pain points like payment failures and checkout abandonment, and by enhancing security, Trustly aims to improve the transactional experience and boost the overall efficiency and profitability of subscription-based businesses. As the market continues to grow, Trustly’s innovative approach positions it as a potential key player in shaping the future of digital payments in Europe.