An increasing number of Fintechs are creating alternative payment rails utilizing the Open Banking infrastructure mandated in the EU. With interchange capped in the EU financial institutions seem less resistant to this approach as we identified earlier with BNP Paribas and Token deploying a new payment method called Instanea built on the Open Banking infrastructure. Now comes Trustly.
Will the US market be able to resist:
“STOCKHOLM, April 12 (Reuters) – Swedish payments firm Trustly said on Monday it intends to list its shares on the Nasdaq Stockholm exchange, the latest in a line of major European tech unicorns seeking a stock market listing.
The deal could see the company valued at around 9 billion euros ($10.70 billion), based on the middle of a range of analyst views on the company seen by Reuters and confirming a Reuters report https://www.reuters.com/article/us-trustly-ipo-idUSKBN29R0YY from earlier this year.
That would be around 60 times Trustly’s expected core 2022 earnings, a discount to peer Adyen which trades at 72.5 times but a premium to Nuvei, which trades at 30.5 times.”
The article continues:
“Other European fintech firms such as Wise and Klarna are also planning for stock market listings.
“This is sort of a process that we have been working on for a year now to prepare the company and make it ready for the public markets,” Trustly Chairman Johan Tjärnberg said.
Trustly had also assessed a listing in the United States and might look at a dual listing in the future, he said.
Founded in 2008, the company counts PayPal, Wise and Facebook among its customers. Its platform allows users to pay for purchases directly through their bank accounts, bypassing the need for a debit card or a mobile wallet.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group