Trustly has temporarily scrapped its $9.34 billion listing after regulators raised concerns about the company’s due diligence processes.

A preliminary review by the Swedish Financial Supervisory Authority (SFSA) found that Trustly needs to perform customer due diligence on some consumers using the company’s payment initiation service to make payments to merchants.

Johan Tjärnberg, chairman of Trustly, said that the company still plans to carry out a listing in the future.

“The Board of Directors and the owners remain convinced that a listing would be beneficial for Trustly and our ambition to list the company remains,” explained Tjärnberg. "However, we have a responsibility to all stakeholders to bring clarity and resolve any outstanding questions from the SFSA’s preliminary assessment."

He added: “Therefore, the Board of Directors has decided not to pursue the plan for a listing in the second quarter. There is today no time plan set for when the IPO will be completed.”

The company is currently in talks with the SFSA.

The move comes as the company reports a record quarter, with a net revenue surging by 46 per cent to SEK 632 million (£53.9 million.)

”The first quarter was record strong with accelerated growth and good profitability for Trustly,” said chief executive of Trustly, Oscar Berglund. “Net revenue increased by 52 percent year on year in constant currency. We continued to grow with both existing and new merchants and we processed a total of SEK 66 billion in transaction volume throughout our global network, up 49 percent from the same quarter of last year.”

Berglund added: “On a regional basis, revenue growth in constant currency was 18 percent in EMEA and 716 percent in North America, meaning that North America accounted for 26 percent of our total net revenue in the quarter. We continue to see a lot of interest in Trustly’s payment platform for a variety of use cases, and especially among global E-commerce merchants.”

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