PYMNTS MonitorEdge May 2024

Lenovo and Trustly Team to Offer Open Banking at Checkout

Lenovo building

Swedish tech firm Lenovo is offering open banking at checkout via a partnership with Trustly.

The collaboration, announced Wednesday (July 3), is open to Lenovo customers in the U.K. and continental Europe, providing them with an alternative method of payment the companies say is less susceptible to fraud than things like debit or credit cards.

“Trustly’s figures show its e-commerce platform has a fraud rate of 0.01%, significantly lower than other forms of payment,” the companies said in a news release. “The checkout technology is more secure, when compared with traditional payment methods, as it allows customers to pay for Lenovo products and services directly from their bank account.”

According to the release, the partnership lets Lenovo benefit from Trustly’s “unique collection model,” which offers the fastest possible settlement, and instant refunds for customers, giving Lenovo greater flexibility in its payments system. In addition, the companies say, the technology is available at a cost lower than that of traditional credit and debit card payments.

PYMNTS spoke last month with Nate Marquiss, head of financial services at Trustly, about open banking’s potential for growth in the U.S.

As that report notes, one of the major advantages of open banking is its potential to revolutionize payment systems. Open banking payments, also known as “pay-by-bank” methods, serve as an alternative to traditional card payments.

These payments can be processed in real time, lessening the costs connected with card transactions and eliminating the risk of chargebacks, Marquiss said. Still, despite these advantages, opening banking remains relatively unfamiliar to U.S. consumers.

One recent survey found that just 11% of adults in the U.S. had used open banking payments in the last year, chiefly because of a lack of understanding of the system. But as awareness and understanding increase, the adoption of open banking is likely to grow, fueled by the demand for seamless, instant financial services — especially from younger generations.

“It’s a new experience. A lot of users are unfamiliar with it,” said Marquiss, underlining the need for education and awareness about open banking’s benefits, especially among younger generations of consumers.

“They don’t want to seek out their account routing number. They don’t want to get out their checkbook or their wallet or purse, et cetera. They want instant gratification, ease of use, less friction,” he said.