N26

Berlin-based N26 provides digital banking services to both the B2C and B2B segments via a web portal and a mobile app. Under both segments, the company operates a freemium/ subscription-based business model, offering its products under four different tiers. “N26 Standard,” its most basic package, is offered free of charge and offers checking accounts, which includes a virtual debit card, free payment options in any currency, and PFM tools that provide users with insights on spending patterns. Packages with additional features are priced at EUR 4.9–16.9 per month and include features such as physical debit cards, insurance products, investment products, and the creation of sub-accounts under one main account and unlimited cash withdrawals in any currency worldwide. The company also offers savings accounts and joint accounts. These accounts do not have minimum deposit requirements, additional fees, or the necessity of direct salary remittance into the account. It also offers Instant Savings accounts in 13 European countries.

The company claims that new bank accounts can be opened within eight minutes via its platform, and it allows users to instantly top up their N26 accounts using credit and debit cards and digital wallet options. The platform also enables users to integrate their accounts with payment services such as Apple Pay and Google Pay, allowing users to make payments via their smartphones.

The company also provides a cryptocurrency trading platform accessible via its mobile app. As of January 2023, the platform was available to customers in Austria, France, Germany, Switzerland, Belgium, Portugal, and Ireland. The company will charge Metal customers a 1% and 2% transaction fee for trading Bitcoins and other cryptocurrencies, respectively, while all other users will be charged an additional 0.5%. In addition, it also offers a stock and ETF trading platform within its mobile app, available for customers in Austria, Ireland, and Germany. It charges EUR 0.90 per trade.

N26 operates under its own banking license in Europe. In November 2021, it announced plans to discontinue its US operations and exited the market in early 2022. By the end of 2023, N26 ceased operations in Brazil. It chose to focus exclusively on the European market instead, particularly Germany, France, Italy, Spain, and Austria.

Key customers and partnerships

As of November 2023, N26 served more than eight million customers across 24 markets.It has collaborated with Stripe to facilitate account top-ups and had aims to leverage Stripe’s network for its own geographic expansion.

N26 has entered into various partnerships to enhance its product offerings. It partnered with Stripe to enable account top ups and it also aimed to leverage the latter’s network to accelerate its own geographic expansion. In addition, it collaborated with Bitpanda to launch its cryptocurrency trading platform. Furthermore, N26 partnered with Upvest to launch a new investment platform.

Funding and financials

In October 2021, the company raised USD 900 million in Series E funding, co-led by Third Point Ventures and Coatue Management. The round valued the company at USD 9 billion (around 2.5x higher than its reported valuation in May 2020). The new funds were intended to be utilized to further strengthen its product offering and grow its workforce, with plans to add over 1,000 new roles in the areas of product, technology, and cybersecurity.

In 2022, N26 reported a net revenue of EUR 236.3 million (USD 256.3 million; up 24% YoY), due to significant growth in account usage and customer activity. It reported an operating loss of EUR 170.4 million (USD 184.4 million), and a net loss of EUR 213.4 million (USD 231.5 million; up 24% YoY), primarily due to a significant increase in investments in compliance as well as human and technical infrastructure. It also reported its transactional volumes improved 22% YoY to EUR 97 billion (USD 105.2 billion) during the year, while its deposit base grew 20% YoY to EUR 7.2 billion (USD 7.8 billion).