Founded in 2013 by the Austrian duo Valentin Stalf and Maximilian Tayenthal, N26 quickly became a payment and financing tool favored by young people offering a variety of convenient features such as mobile payments, fast money transfers and reduced taxes. So far, N26 is among the most successful fintech startups.
After its overseas expansion in 2019, Berlin-based Neobank is now abandoning its operations in the United States and withdrawing its services from the American market. As of January 11, 2021, more than 500,000 customers will no longer be able to use N26. The US market is known for its well-funded “challenger banks”, which could be a reason for the German neobank’s final decision, as the costs of supporting the service across the US are quite high.
The company will now focus on Europe where competition also gains strength. Not so long ago, N26 left Ukraine, the domestic market of its biggest competitor Revolution which is also widely used in Eastern European countries. N26 will now target markets like Romania, Bulgaria, Hungary and other Balkan countries that are not yet highly developed.
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“In addition to strengthening its core business in Europe, where acceptance of digital banking is still in its infancy, N26 is also considering future expansion into other markets in Eastern Europe to meet growing demand customers in the region. » » shared the founders of N26.
New focus on crypto, stocks and ETFs
As interest in crypto trading and exchanges continues to grow, neobanks such as the German startup need to keep pace. Starting in early 2022, users of the banking app should also be able to invest in crypto assets, ETFs and stocks, which will put N26 in more intense competition with Revolut, Bitpanda and Trade Republic since they have already integrated this service.
“N26 will focus its strategy on extending its digital banking experience to new areas and will also offer investment products over the coming year to create an even more comprehensive and attractive digital offering. By including additional financial services and products in its offering, N26 aims to enable its customers to manage additional aspects of their financial lives in a simple and transparent manner. said the Berlin-based company.
READ MORE: N26 raises €700 million, aims to launch into crypto trading
