TrueLayer has launched its new payment product that will allow retailers to process instant refunds more efficiently and cost-effectively. TrueLayer is an open banking platform. The product will be available in Ireland, France, Germany, Spain, Lithuania and the Netherlands.
The company says traditional payment methods were not built to handle the speed of online commerce. With cards taking up to three days to settle, businesses struggle to manage liquidity. Customers have to wait in limbo for refunds and withdrawals. Cards and digital wallets generate substantial costs for retailers through interchange fees, chargeback penalties and time-consuming manual tracking processes.
There is also the issue of rising card fraud in Europe, which totalled €1.55 billion in 2020. Card-not-present fraud accounts for 76% of those cases. France, Germany and Spain all ranked in the top five for card fraud losses.
TrueLayer says it is addressing these points with a more cost-effective, frictionless and secure payments product. The solution is built on open banking and the fastest available bank payment rails that deliver:
Key features of the solution
- Instant refunds and withdrawals. Verified account details are associated with each customer. This allows businesses to provide instant refunds back into the same account used for the deposit. This is managed with a simple API call, as well as instant withdrawals.
- Instant pay-ins. Customers can top up their accounts, buy products and send money in seconds with account-to-account payments. Deposits settle in a dedicated retailer account and are automatically reconciled against customers’ details.
- Dedicated retailer accounts. Businesses can automate reconciliation processes and gain full visibility of their customer’s account details as soon as payment settles. They can also withdraw automatically into their bank account.
- Frictionless checkout processes. Inputting card details is inconvenient for customers and errors can derail the entire checkout process. TrueLayer removes any manual entry on banking details, eliminating mistakes and making it easier to complete payments.
- Fewer abandoned payments. The solution was tested on millions of transactions across the UK and Europe. TrueLayer’s embedded payment flows make paying easier than ever. The result is fewer payment abandonments and higher conversion rates.
- Lower operational costs. Open banking removes the interchange fees and chargebacks of cards, making them far more cost-effective. TrueLayer also automates expensive and time-consuming manual processes such as reconciliation and sending payouts. The platform provides full visibility of all payments via the merchant dashboard.
- Reduced payment fraud. Payments are PSD2 and SCA compliant. Payments are authenticated directly with the bank, reducing the opportunity for fraud and chargebacks.
‘A better payments experience’
According to Till Wirth, Head of Product at TrueLayer, “With TrueLayer, eCommerce firms can create a better payment experience. This is achieved through a single implementation offering instant deposits, withdrawals and refunds. Instant deposits enable our customers to achieve higher conversion rates, which improves customer acquisition. YouGov research has found that 63% of shoppers would be comfortable paying by open banking. 74% of merchants plan to offer instant bank payments, via open banking, as part of their long-term strategy.
The same research revealed 67% of shoppers said the time taken to receive a refund is an important factor affecting their decision of whether or not to shop on that website again. Payments with TrueLayer remove the friction and delay that affects customer loyalty and retention. It makes it as instant as the initial checkout payment. Customers can see the instant transfer of funds with minimal fuss. In contrast, settlement and refunds with cards often takes three days or more.”
Enterprise Times: What this means for business
Payments are often described as the last leg of the eCommerce customer experience. Customers simply require a fast confirmation of payments and an effective and clearly documented refund process. Businesses require platforms that accept account-to-account payments, and send instant refunds in any app or website. Furthermore, they require solutions that deliver the most comprehensive European payments experience. TrueLayer’s recent announcement appears to tick all those boxes. The company says the new solution lower costs and has a lower risk of fraud than traditional payment options. This includes cards, manual bank transfers and digital wallets. Payment operators must remove any friction that impacts on customer loyalty and retention.