## Closing the Distance: US Growth on the Horizon
In a recent discussion, John Mallia, Gaming Account Director at Trustly, provided Gambling Insider a peek into the payment solutions company’s achievements this year and emphasized potential developing sectors.
Mallia recognized the difficult beginning to the year, especially within the Swedish market. Legislative shifts affected the whole sector, and Trustly was not immune. However, he stressed the company’s adaptability, highlighting their successful maneuvering through these obstacles. Trustly continues to push forward, introducing new brands and initiatives with major players like Catena Media. Mallia emphasized that temporary declines don’t define the entire year’s triumphs, particularly when a company remains proactive and flexible.
While rivalry and fresh brands continuously appear, Mallia expressed assurance in Trustly’s robust product, placing them favorably within the market. He also pinpointed the Payment Services Directive 2 (PSD2) as another hurdle, resulting in some postponed modifications from financial institutions. Nevertheless, Trustly had foreseen and planned for both PSD2 and the wider open banking movement.
Focusing on the Swedish market specifically, Mallia conceded a challenging phase following the legislative alterations, impacting the entire industry. Despite this, Trustly stays the course, upholding a strong market presence. Mallia trusts these regulatory obstacles will ultimately fortify the company over time.
While Mallia recognized the learning experiences that stem from regulatory shifts, he believes the Swedish case is distinct and its takeaways may not be universally relevant.
Self-imposed limitations are a key feature of the Swedish market. Although no entity was fully ready for its complete rollout, it offered a crucial insight: foresee regulatory demands when penetrating new territories. Without a doubt, businesses adapt and gain knowledge over time, and each governing body has its own unique methodology and procedures. They will uphold regulations and guidelines in their own manner.
Some markets don’t require a single bonus proposition for a user’s existence, a significant difference from the strategy in the Swedish market and its regulatory authority. Each market presents its own distinct obstacles, but I think the difficulties are essentially alike across all controlled markets. Organizations need to elevate their oversight and exhibit leadership in terms of conformity; application procedures need to be treated with seriousness, and sufficient time needs to be allotted.
As a financial transaction service, we were already a certified Swedish financial entity, so we didn’t have to implement many modifications. This gave us a certain edge.
In a prior discussion we had with Samuel Barrett, he stated that if the Swedish Gaming Commission or a judicial body determines that a provider has acted in violation of the Swedish Gaming Statute, a halt of services might be necessary. Have you ever been obligated to do this?
We encountered a situation earlier this year where a provider had its authorization withdrawn, and we naturally ceased our services afterward. The provider themselves were compelled to close their platform.
This event happens only annually.
Last May, you revealed a consolidation with Silicon Valley-headquartered PayWithMyBank. Can you provide details on the implications of this agreement? Does this lay the groundwork for an entry into the US gambling sector?
That’s a thought-provoking inquiry. Our approach with PayWithMyBank involves attentively listening to our vendors, understanding their desired target markets and operational needs. The US ranked highly on that priority list.
The amalgamation with PayWithMyBank presents a prime chance to collaborate with proprietors and penetrate that market. Regarding gaming, PayWithMyBank already possesses clients within the US gaming industry, making it familiar ground for them. It serves as a favorable access point for us into a highly appealing market.
These actions aim to strategically position us to leverage the expanding trend of interbank payments, which is steadily gaining traction in the US.
Are there any additional emerging markets you aspire to enter?
Currently, we are not prepared to divulge specific markets. However, we are actively striving to introduce our services in new territories. Trustly has transitioned from an EU-centric provider to a global entity, and we are determined to maintain this trajectory. As for which market will be prioritized and the timeline, these are aspects we cannot definitively project at this juncture.
What obstacles do you anticipate in 2020?
The gaming sector remains highly competitive.
The commercial landscape is poised to become considerably more challenging, as rivalry intensifies and regulations exert a firmer hold. However, let’s remember that every difficult situation presents a potential upside. Trustly is preparing to confront these obstacles directly and transform them into advantageous circumstances. We’re referring to PSD2, APIs, open banking – the entire spectrum. Our focus is on introducing novel, groundbreaking products and significantly enhancing our current offerings. Let the games begin!
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