## Closing the Distance: Trustly’s Growth in the US
In a conversation with Gambling Insider, Trustly’s Gaming Key Account Manager, John Mallia, explored the payment platform’s achievements over the past year and their ambitious forays into fresh territories.
**Gambling Insider:** John, could you provide a glimpse into Trustly’s path this year? What significant obstacles have you encountered?
**John Mallia:** Well, the year commenced with some difficulties. The regulatory overhaul within the Swedish market affected the entire sector, and naturally, we experienced its impact as well. Nevertheless, we endured the turbulence and emerged more robust. We sustained our collaboration with operators, introducing new brands and engaging in exciting initiatives, such as our alliance with Catena Media. A minor obstacle doesn’t determine your year unless you allow it to.
Undoubtedly, competition is ever-present, with emerging contenders entering the arena. However, we possess unwavering confidence in the potency of our product and its capacity to maintain our leading position. Another hurdle has been maneuvering through the implementation of PSD2 (Payment Services Directive 2), which resulted in some eleventh-hour modifications from banks. Yet, we were adequately prepared for PSD2 and the dawn of open banking.
**Gambling Insider:** You alluded to the Swedish market. How has the situation unfolded there since the regulatory alterations?
**John Mallia:** It has been a demanding phase for the entire Swedish market, and we have certainly had our fair share of adaptations. The positive aspect is that we have remained dedicated to our approach and are strategically positioned for the times ahead. We firmly believe that the trials presented by the regulatory shifts will ultimately enhance our resilience and adaptability.
**Gambling Insider:** In your view, are there any valuable lessons to be learned when a market undergoes such regulatory transformations?
**John Mallia:** I perceive the Swedish scenario as quite distinctive…
What distinguishes Sweden is its approach of self-imposed limitations. This regulation caught many off guard, presenting a steep learning experience for all involved. It underscored the importance of anticipating rules when venturing into new territories. Naturally, growth and adaptation are constant, and each regulatory body possesses its own distinct method. They will uphold regulations and protocols in their unique manner.
Interestingly, other markets don’t impose a lifetime limit on player bonuses. This characteristic is exclusive to the Swedish market and its governing authority. While every market has its own idiosyncrasies, the obstacles, I believe, are comparable across all regulated markets. Companies must elevate their compliance and governance standards, exhibit leadership, maintain meticulous application procedures, and factor in ample time.
Being a payment processor, we held a pre-existing license as a Swedish financial entity, minimizing the need for significant adjustments. This existing status proved advantageous.
A past discussion with Samuel Barrett touched upon the potential need to halt services if the Swedish Gambling Authority or a judicial body determines an operator’s violation of the Swedish Gambling Act. Have you encountered any parallel situations?
Earlier this year, we dealt with a scenario where an operator faced license revocation, prompting us to cease our services. Consequently, the operator was compelled to take down its online platform.
This event happens annually.
Your organization declared an amalgamation with Silicon Valley-headquartered PayWithMyBank in the month of May. Could you elaborate on the implications of this agreement? Will this facilitate an entry into the United States gaming sector?
That’s a thought-provoking inquiry. Concerning our union with PayWithMyBank, we consistently assess our clientele’s requirements, the markets they desire to penetrate, and the locations where our presence is necessary. The US is undoubtedly a high priority for them.
The fusion with PayWithMyBank presents a fantastic chance for us to penetrate this market collaboratively with our partners. From Boku’s customer perspective, PayWithMyBank already possesses clientele within the gaming vertical in the US, so it’s not an unfamiliar domain for them. For us, it serves as an excellent stepping stone to enter a highly appealing market.
This strategic maneuver is intended to enable us to leverage the expanding trend of account-to-account transactions, a burgeoning phenomenon in the US.
Are there any additional emerging markets you aspire to enter?
Currently, we are not disclosing any particular markets, but we are actively working on launching in new territories. Trustly has transitioned from being a European Union provider to a global entity, and our goal is to persist on this trajectory. As for which market will be the first and the specific timing, it’s premature to say.
What obstacles do you anticipate in the year 2020?
The gaming sector maintains its status as a highly competitive landscape.
The field of competition and the world of regulations are becoming increasingly difficult, but this signifies a vast capacity for innovation.
Consider Trustly. We are poised to confront these obstacles directly and transform them into advantages, particularly with the possibilities unlocked by PSD2, APIs, and the broader open banking movement. Anticipate witnessing us introduce revolutionary products and enhance our current offerings significantly.
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