Payments network TrueLayer has launched Verified Payouts, a new solution designed to ensure funds are paid out instantly and to the correct, verified bank account. The product combines instant payout technology with account verification to meet regulatory compliance requirements for industries like financial services and iGaming.
The solution creates a ‘closed-loop’ payment flow by matching each withdrawal request to the original depositing account using the customer’s name and transaction history. According to the company, this process is designed to reduce fraud, prevent misdirected payments, and eliminate costly manual checks.
Addressing payout compliance and efficiency
For regulated sectors such as iGaming and financial services, ensuring payout compliance is a key operational requirement. Verified Payouts aims to meet UKGC and FCA guidelines by ensuring funds are returned to the same verified account used for deposits.
The system bypasses traditional card-based withdrawal methods by moving money directly between bank accounts via the Faster Payments network, allowing funds to arrive in a customer’s account within seconds.
The company also reports a 99.7 per cent success rate for returning user payouts using this method. For merchants, the stated benefits include cost savings by avoiding card scheme fees, improved operational efficiency through automated retries and intelligent rerouting of failed payments, and a frictionless repeat payment process for customers.
“Paying out instantly to the right account is a challenge that costs businesses time, money, and customer trust,” said Kris Lembke, head of product at TrueLayer. “Verified Payouts solves that problem. We designed it side-by-side with our customers, ensuring it solves the real-world payout problems they face every day.”
Merchant adoption
Betting exchange Smarkets is one of the first merchants to go live with the new solution.
“Smarkets is dedicated to giving customers the best possible product experience, so we are excited to use Verified Payouts to help ease a common pain point around withdrawals,” commented William Chambers, chief operating officer at Smarkets. “Verified Payouts allows our customers to use Pay to Bank for withdrawals, regardless of which method they last deposited with, by maintaining closed loop safeguards. It is safer and more convenient for our customers and more efficient for Smarkets.”
TrueLayer stated that the solution is also being integrated by several other merchants and will go live in the coming weeks. The company also reports that it currently processes nearly half of all Pay by Bank transactions in the UK and is used by more than 15 million people across 22 countries.
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