Challenger Bank N26 is launching a new business feature in the app – N26 Crypto. Users can easily trade crypto assets using funds in their N26 account. Behind the scenes, N26 is partnering with Bitpanda to manage trading and security.
N26 is gradually going to roll out N26 Crypto across Europe. Initially, only some users in Austria will have access to the new feature. Other countries should get the feature at some point in the next six months.
N26 allows you to buy, sell and hold 100 different crypto assets. The startup plans to add another 94 crypto assets down the road. And I’m sure the company will soon expand into stocks and other asset classes.
N26 Crypto will be accessible from the second tab named “Finance”. From this screen you will find your slots – those are sub-accounts that you use to allocate some money in a separate wallet. Spaces can also be used as shared accounts with other people.
Below your list of positions, there is a new “transaction” section with your crypto portfolio. N26 lists all your crypto assets, the value of your positions and how they have changed over the past 24 hours, week, month or year.
When users want to buy or sell some cryptocurrencies, they can select (or search) a crypto asset and enter an amount by hitting the buy or sell button. N26 shows both the exchange rate and how much you’ll pay in fees.
Image Credits: N26
N26 plans to charge 1.5% for bitcoin transactions and 2.5% for all other cryptocurrencies. That’s the same fee that users pay through Bitpanda’s own app. Users who pay €16.90 per month for N26 Metal pay 1% and 2% transaction fees in bitcoin and other cryptocurrencies respectively.
The main advantage with N26 Crypto is that it is directly linked to your existing bank account. No need to upload funds to another trading account, switch to Bitpanda app (another app) and trade from there. Likewise, when you withdraw money with N26 Crypto, you get euros in your main N26 account – no need to transfer money back to your bank account.
N26 is not the first fintech startup to build a deep integration with Bitpanda. French payments app Lydia partnered with Bitpanda to introduce the ability to trade stocks, precious metals, cryptocurrencies and ETFs in its app last year. In my experience, it works really well.
Last week, N26 shared its 2021 financial results. While total revenue grew by 50% to over 180 million euros, operating expenses rose rapidly, resulting in a net loss of 170 million euros.
Indeed, N26 has raised hundreds of millions of Euros. Thanks to these deep pockets, the company has enough time to figure out how to get more revenue from its users while keeping operational costs under control. N26 and Bitpanda may have agreed to share the revenue from N26 Crypto, the new feature should contribute to the company’s bottom line.
