Flywire and Trustly Expand Open Banking Partnership to U.S. and Canadian Markets

Quick Summary

Flywire and Trustly are expanding their open banking payments partnership to the U.S. and Canada. This collaboration enables Pay by Bank functionality for high-value domestic and cross-border transactions, allowing users to pay directly via bank credentials while eliminating manual entry, reducing failures, and ensuring real-time balance checks.

How Does Flywire Solve Payment Friction in North America?

Flywire solves the problem of manual, error-prone bank transfers by integrating Trustly’s open banking infrastructure directly into the checkout flow. Instead of manually entering routing and account numbers, payers in the U.S. and Canada can now use their online bank credentials to authorize payments. This Pay by Bank experience is designed specifically for high-stakes sectors like education, healthcare, and travel, where accuracy is paramount.

• Eliminates manual entry errors by using direct bank authentication.
• Reduces payment failures through instant verification of funds.
• Enhances user experience by mirroring familiar mobile banking logins.

What Benefits Does Open Banking Bring to Cross-Border Payments?

The partnership leverages open banking payments to provide radical transparency and security for international transactions. By managing funds during critical return windows, Flywire and Trustly provide guaranteed payment outcomes and minimize the risk of post-settlement reversals. This is particularly vital for high-value bank transfers that typically suffer from opaque fee structures and long processing times.

• Real-time balance checks mitigate Non-Sufficient Funds (NSF) risks.
• Transparent pricing is shown upfront, eliminating hidden wire fees.
• Global compliance is streamlined across differing U.S., Canadian, and European regulatory landscapes.

What Results Has the Flywire-Trustly Collaboration Delivered?

Since their initial partnership in 2017, the two companies have successfully scaled open banking payments across Europe. This North American expansion is backed by a proven track record of serving approximately 5,300 clients globally. By applying this established infrastructure to the U.S. and Canada, Flywire enables its clients to offer a modern digital experience that has already demonstrated success in reducing inbound support inquiries and improving settlement predictability.

FF NEWS TAKE:

This expansion of open banking payments into North America by Flywire and Trustly definitely moves the needle. While Europe has led the way in A2A payments, the U.S. and Canada have remained reliant on legacy ACH and card networks for high-value transfers. By bringing a Pay by Bank model to complex verticals like healthcare and education, Flywire is effectively bypassing traditional friction points, signaling a major shift toward account-to-account dominance in the North American fintech landscape.