PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

German Mobile Bank N26 Looks Toward the Future With Thoughts of First Acquisition

By Laura Handly
January 29, 2021
in Analysts Coverage, Credit, Debit, Emerging Payments, Fintech, Mergers and Acquisitions, Mobile Banking
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Will COVID-19 Make or Break Digital Banks?

mobile bank app online banking vector illustration

Despite their capacity to attract millions in venture capital, many fintechs struggle on the path towards profitability. They draw customers with promises of fee-free banking, responsive customer service, and innovative technology, but they lack many of the tools that traditional financial institutions use to make money. 

German fintech N26 has overcome this profitability challenge by introducing premium subscription-based accounts and a new “marketplace model,” which allows its customers to take advantage of products like trading and credit, while collecting fees from the third-party providers of these services.

With many fintechs struggling during the Covid-19 pandemic, some are expecting consolidation in the industry. By taking advantage of its subscription and marketplace models, N26 has put itself in a powerful position amongst fintechs and is expected to make its first acquisition shortly. 

CNBC reports more on the topic: 

“A big driver of N26′s revenues has been its premium subscription-based accounts, for which it charges between 4.90 euros to 16.90 euros for a range of additional features.

But Tayenthal said the big focus for 2021 will be a “marketplace” model, where it includes products it can’t offer itself — such as trading and credit — while taking fees from third-party providers in the N26 app.

‘In 2020, we actually brought down the burn significantly,’ Tayenthal said. ‘It is true that, at one point in time, while we are still investing into growth, expansion and building up the team, we also want to get more in the direction of profitability.’

The N26 co-founder said his company plans to hire an additional 200 employees this year. It currently employs 1,500 staff globally. The firm is also planning to expand into Brazil, having recently obtained a banking license in the country.

‘The environment in Brazil is actually very favorable,’ Tayenthal said. ‘Everyone has a bank account in the markets we’re in already; in Brazil, this is obviously not true.’”

Overview by Laura Handly, Research Analyst at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Covid-19CreditFintechMobile BankingN26

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    commercial card, Allpay ClearBank Prepaid Payments, wealth transfer

    How Banks Can Capture the Wealth Transfer from Boomers to Gen Z

    June 20, 2025
    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result