Swedish fintech Trustly to cut around 200 jobs

Swedish fintech Trustly is cutting
around 200 jobs, around a quarter of its overall headcount, as it looks to streamline
its operations and focus on key areas of the business, it said.

Trustly, which is backed by BlackRock and has raised over $400m in
funding, leverages open banking technology to allow its
customers to pay directly from their bank account without needing to use
a card or app.
It is an alternative payment method to
card giants Visa and MasterCard.
 

Trustly is used by thousands
of merchants worldwide, including Alibaba, PayPal and Wise.

The job cuts were first reported in Swedish
outlet Breakit, which said last year Trustly lost a significant chunk of
revenue when it lost two major unnamed clients, which subsequently returned. The outlet also reported that Trustly might have been up for sale last year.

Trustly said the job cuts, which are
understood to mostly hit its teams in
Brazil, were about focusing investment
on priority areas.

A Trustly spokesperson said: “We’ve
shared proposed organisational changes with our employees that impact around 200
roles globally.
These changes are about sharpening our
focus and concentrating investment behind the priorities that will help us lead
the rapidly growing open banking market.
We understand the impact this will have
on those whose roles are affected, and we’re supporting every employee
throughout the process.”

Trustly is understood to employ over 800
staff.

Headquartered in Stockholm, it has
offices around the world, including in London, Helsinki, Ottawa and San Carlos.
Trustly CEO Johan Tjärnberg told
staff about the cuts via an email sent yesterday.

Trustly snapped up UK open banking
outfit Ecospend in 2023. It has raised $438m in total and its
other backers include Nordic Capital, Aberdeen Standard Investments and the Investment
Corporation of Dubai, according to PitchBook.