N26 News: 75% of customers pay contactless in the Corona crisis
The bank of smartphones N26 sees a significant increase in contactless payments. The rate fell from 50 to 75%, as announced on Thursday the German boss Georg Hauer of the Reuters news agency. Contactless payments are “significantly more hygienic“.
But not only the method of payment changes, according to N26. Overall, much less money is spent on travel and restaurants. In return, the use of streaming services such as Netflix & Co.
Effects of the crown pandemic on N26
Many financial institutions, including Deutsche Bank and Commerzbank, will close their branches until further notice. But the pure N26 smartphone bank is also affected by the effects of the corona virus: “The number of new customers is not increasing as much as usualAs Hauer points out. In addition, we do not buy so much, which is why growth may initially be weaker. However, this is not a reason for a negative N26 forecast. Rather, it anticipates a counter-movement.
In the long term, fintech even sees an opportunity to benefit from current development. Closures of local bank branches could therefore encourage more people to open an account online in the near future.
N26 action plans are not suspended
Meanwhile, N26 is still sticking to the planned IPO. However, this does not happen immediately: “Nothing has changed in our plans for a possible IPO in four to five years due to the Corona crisis“As opposed to N26”Bloomberg“Announced. According to Fintech’s assessment, it would not make sense to throw these long-term plans overboard after a few weeks of crisis.
N26 is still one of the most valuable unlisted fintechs in Europe. It was not until 2019 that $ 3.5 billion in investor funds could be raised. More and more people know about N26, in early 2020, the bank announced that the brand had been reached by 5 million customers.