TrueLayer rolls out closed-loop payment product across Europe

Open Banking platform TrueLayer has launched its closed-loop payment product in key markets in Europe, combining instant account-to-account (A2A) deposits and instant withdrawals and refunds.

The product, which is already in use in the UK, has been rolled out to Ireland, France, Germany, Spain, Lithuania and the Netherlands.

TrueLayer’s payments product is built on Open Banking and allows customers to top up their accounts, buy products and send money “in seconds” with A2A payments, with deposits settled in a dedicated merchant account.

It also means that businesses can provide instant withdrawals and refunds back into the same account used for the deposit with a “simple” API call.

Another feature of the product is that businesses are able to automate reconciliation processes to gain full visibility of their customer’s account details as soon as payment settles and can also withdraw automatically into their bank account.

Till Wirth, head of product at TrueLayer, said: “With a single implementation, our platform delivers instant deposits, withdrawals and refunds. Instant deposits enable our customers to achieve higher conversion rates, which improves customer acquisition.

“Instant withdrawals and refunds lead to improved customer retention and loyalty as customers can see the instant transfer of funds with minimal fuss, or [without] having to chase support teams asking where their money is. In contrast, settlement and refunds with cards often takes three days or more.”

Wirth added that research by YouGov has found that “37% of investors said they would increase their deposits and 46% would switch providers, if the investment platform also allowed them to withdraw their funds immediately”.

Among the benefits of the product to consumers and businesses touted by TrueLayer are “frictionless” checkout processes, fewer abandoned payments, lower operational costs and reduced payment fraud.

Earlier this year, TrueLayer entered Sweden as part of its ongoing European expansion, hiring Karl Hagner from Adyen as country manager.