## A Foundation for US Expansion
In a recent interview with Gambling Insider, John Mallia, Gaming Customer Team Lead at Trustly, explored the payment platform’s progress throughout the year and prospective new territories.
The discussion began with Mallia’s assessment of Trustly’s year, highlighting significant obstacles they’ve navigated. He elaborated that the Swedish market’s restructuring at the year’s onset presented difficulties for the entire sector. While this inevitably touched Trustly, he stressed their successful rebound, continuing to introduce fresh brands and collaborations with operators, such as a venture with Catena Media. Mallia maintained that a minor dip doesn’t dictate the entire year unless allowed.
He recognized the constant presence of competition and emerging brands, but emphasized Trustly’s robust product positioning them advantageously. Mallia also cited Payment Services Directive 2 (PSD2) as another hurdle, leading some banks to implement last-minute modifications. However, he clarified that Trustly had been proactively preparing for PSD2 and open banking.
Shifting focus to the Swedish market, Mallia addressed its performance post-re-regulation.
He conceded the market presented difficulties, a sentiment echoed across the Swedish industry. Positively, Trustly has remained on track with its plans and is strategically situated. Mallia expressed optimism that the restructuring’s obstacles will ultimately bolster their strength.
Concluding the interview, Mallia was questioned about potential insights gained from a market undergoing regulatory changes.
He views this as a highly distinct scenario;
What distinguishes the self-banning policy is its singularity. This particular regulation caught many off guard, emphasizing to operators the importance of foreseeing regulatory demands when venturing into new territories. Naturally, operators adapt and gain knowledge. Each regulatory body possesses its own methodology, characterized by distinct regulations and enforcement approaches.
Not all markets confine players to a solitary welcome incentive indefinitely. This is fairly specific to the Swedish market and its governing authority. Every market presents its own idiosyncrasies and hurdles, but I think the overarching difficulties are comparable for any market subject to regulation. Proactiveness and demonstrating leadership in compliance are essential; the application procedure must be treated with seriousness, allocating ample time.
Being a payment processor, we already held authorization as a Swedish financial institution, necessitating minimal adaptations. This provided us with a favorable position.
In your prior dialogue with Samuel Barrett, he indicated that an operator could face suspension if the Swedish Gambling Authority or a judicial body determines a violation of the Swedish Gambling Act occurred. Have you personally dealt with such an instance?
This year, we experienced a scenario where an operator forfeited its license, leading us to cease our service provision to them. The operator was compelled to shutter its website as a consequence.
We conduct this activity annually.
Last May, you revealed a consolidation with Silicon Valley-headquartered PayWithMyBank. Could you provide details on the implications of this agreement? Does this establish a basis for venturing into the U.S. gambling sector?
That’s an excellent inquiry. Concerning our amalgamation with PayWithMyBank, we’ve been attentive to our clientele; they desire our presence or assistance in various markets. The U.S. is undeniably a top priority for them.
The unification with PayWithMyBank presents us with a remarkable prospect to penetrate this market collaboratively with operators. In the realm of gaming merchants, PayWithMyBank already possesses clientele within the U.S. gaming domain, so it’s not an alien landscape for them. It serves as a favorable entry point for us into a highly promising market.
Undertaking this positions us advantageously to leverage the escalating prevalence of bank transfer transactions in the U.S.
Are there any additional emerging markets you are contemplating expansion into?
Currently, we are not prepared to divulge specific markets, but we are diligently striving to introduce our services in new territories. Trustly has evolved from a European provider into a global entity, and we aspire to persist in this trajectory. As for which market will be the first and the timeframe, it’s premature to determine.
What obstacles do you anticipate in 2020?
The gaming industry consistently presents a competitive environment.
The commercial landscape is becoming increasingly cutthroat, with regulatory bodies intensifying their oversight. However, this simply paves the way for a plethora of emerging prospects!
At Trustly, we embrace challenges head-on. In fact, we’re invigorated by developments such as PSD2, APIs, and the burgeoning open banking revolution. We perceive these as catalysts for innovation and expansion. Our team is diligently enhancing our existing offerings while simultaneously developing groundbreaking solutions poised to disrupt the industry.
admin