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Fifth Third's Newline Partners With Trustly to Boost Payment Interface

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Fifth Third Bank’s (FITB - Free Report) embedded payments platform — Newline — entered into a collaborative agreement with Trustly, the global leader in Open Banking Payments to augment the money movement in the United States.

The collaboration will further enhance the payment experience for both companies' customers.

Other banks are also making efforts to enhance the payment interface. In a similar case, U.S. Bancorp’s (USB - Free Report) wholly-owned subsidiary, Elavon, launched the Elavon Cloud Payments Interface in June. This is an innovative Application Programming Interface (API), which is intended to simplify managing digital and in-person payment experiences for hotels and other entities related to hospitality. USB’s new Payments Interface integrates payments seamlessly and securely for its guests and business clients. The cloud-based system allows guests to pay anywhere and anytime while ensuring that payment data is protected.

The same month, Citigroup Inc. (C - Free Report) announced its plans to introduce Citi’s first-of-its-kind 24/7 USD Clearing service in the Middle East in collaboration with Emirates NBD — a leading banking group in the Middle East, North Africa and Türkiye region. This collaboration makes the C’s cross-border 24/7 USD payments available to Emirates NBD’s corporate and retail clients 24 hours, end to end, across its branch network.


Few Words on Newline by FITB

Newline is an API platform that allows businesses to offer payment, card and deposit products directly through Fifth Third Bank. 

Following the acquisition of Rize Money in 2023, Newline redefined bank technology and embedded payments, integrating the finest in fintech innovation with a trusted banking relationship.


Strategic Implications of FITB’s Newline Collaboration

By collaborating, Newline and Trustly will advance innovation across the money movement landscape, encompassing pay-by-bank arrangements and payments made through the Automated Clearing House (ACH) and Real Time Payments (RTP) networks. Both organizations will initially work together on ACH and RTP payment products for deposits and withdrawals.

Through Newline's API, Trustly may send payments immediately through the platform. Together with FITB, Trustly hopes to grow its payment products to address the increasing demand for dependable, streamlined payment experiences.

This strategic agreement demonstrates the shared commitment to provide frictionless, secure and advanced financial solutions. Both companies will continue to work together to create user-centric banking experiences and set new standards for digital payments.


FITB’s Progress in the Payments Landscape

Fifth Third Bank has been undertaking business expansion efforts through strategic acquisitions and partnerships. This strategy is consistent with the company’s focus on enhancements and innovation to diversify its revenue streams and gain market share.

In July, FITB entered into a collaborative agreement between its embedded payments arm, Newline, and Stripe, a financial infrastructure platform, to expand embedded financial services offerings. Together, Newline and Stripe will expand embedded financial services for Stripe’s platform users and their customers.

Earlier in May, the company collaborated with Bottomline to launch Enhanced Payables, a new payment platform powered by the latter’s business payments network, Paymode-X. This partnership offers customers access to a wide range of payment options, including invoice automation, virtual card payments, premium Automated Clearing House (ACH) payments, standard ACH payments, check payments and business-to-consumer payments.

Currently, FITB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past six months, the stock has gained 16.8% compared with the industry’s 14.7% growth.

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