Recently, Trustly released its financial results for the first quarter of 2021. The Stockholm-headquartered fintech company enjoyed a prosperous three months, reporting both strong growth and profits.
With various solutions for gaming operators, the company’s results are of particular importance to the iGaming industry. And Trustly has even more in the pipeline, including public listing plans.
So, just how did Trustly perform? And what do these results mean for both players and betting companies?
How did Trustly perform in Q1 2021?
In the three months ending on 31st March 2021, Trustly reported 632 million Swedish Kronor (SEK) in revenue. This translates to just under £53.7 million. The figure was 46% higher compared to the same period last year.
When talking on a constant currency basis, net revenue rose by over 50%.
Transaction volume also increased massively. The Swedish fintech company processed 66 billion SEK (c.£5.6 billion) in payments throughout the quarter, which was 49% higher than in the first three months of 2020.
Why did Trustly perform so well?
A notable talking point from Trustly’s Q1 2021 results was how well the company did in North America. Revenue from across the Atlantic rose by 609% compared to Q1 2020. In the first three months of the year, the continent also accounted for 26% of net revenue.
Trustly also announced a few high-profile partnerships. Towards the end of February, Premier League side West Ham United announced that Trustly would become its official global open banking partner.
In the same month, the betting operator Pinnacle announced that it had joined forces with both the payments service and Relog Media to launch April’s CS:GO esports tournament.
Trustly’s upcoming plans
One big topic of discussion in Q1 2021 was Trustly’s intentions to go public on the Nasdaq Stockholm AB, previously known as the Stockholm Stock Exchange. In January, Reuters reported that the company was planning an initial public offering (IPO).
Beyond Q1, the Financial Times reported on 12th April that the company had announced plans to file this IPO at a $9 billion (£6.4 billion) valuation.
Trustly has since announced that it’s postponing these plans for now. These intentions don’t look to be dead forever, though; Chairman Johan Tjärnberg mentioned that the company wants to “bring clarity and resolve any outstanding questions from the [Swedish Financial Supervisory Authority] SFSA’s preliminary assessment”.
Implications for the gambling industry
Trustly’s plans to grow even further will only help both players and operators in the long run. The company is already popular for features such as Pay N Play, and partnerships like its one with West Ham will expand its profile to more potential users.
The platform’s success in North America will also indirectly benefit UK gambling. Through its increased presence across the water, the company will learn more about operating in different markets. And if anything standout works over there, they may choose to innovate and bring it to Britain.
Naturally, Trustly’s increased revenue will also enable it to reinvest back into further enhancing its existing payment options. This means that players will get to enjoy even more convenient and reliable instant solutions.
Trustly’s record figures may be a sign of things to come
Despite choosing to shelve its IPO plans for the time being, Trustly’s Q1 2021 results show that the company is on a strong trajectory. Growing its presence in the UK through strategic partnerships will also help to further increase the business’s exposure within the market.
The continued improvement of its services will continue to serve the industry well. Meanwhile, continued growth in North America will enable Trustly to innovate in its other established markets.
Going forward, the continued demand for convenience will motivate Trustly to stay ahead of its competition. And that, ultimately, will lead to higher-quality payment solutions in the industry.
