German neobank N26 is following in the footsteps of competitors like Paypal and Revolut, and will enable Bitcoin and cryptocurrency purchases for its seven million customers by the year’s end.
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The move comes despite reservations from the N26 co-founder Valentin Stalf, who is not a bitcoin enthusiast, as German finance magazine Finance FWD reports. However, “the customers want crypto,” he was quoted saying earlier in the year.
To make these purchases possible, N26 is working with an as as yet unknown partner is Serbia, where “a team of 40 people is working with N26’s global product and technology team,” according to comments from a representative.
The developments indicate a shift in N26’s view on bitcoin, given that until recently the company’s terms and conditions included a section noting that crypto transactions could result in account closures. In 2020, N26 users shared related experiences on the popular (and original) bitcoin forum Bitcointalk.
The tables seem to have turned now.
The trading platform is expected to launch stock trading options sometime in 2022 and its still not certain whether this will include crypto trading pairs.
In recent years neobanks have risen in popularity, in part due to their simple and non-cumbersome user experience. N26 itself has reached a valuation of $3.5 billion since its inception in 2013.
Younger audiences tend to gravitate towards the new banks, partly because of the ease of access and online bank management. Many neobanks also provide offers in partnership with popular brands and additional perks such as cash back and travel or phone insurances, catering to a young and mobile crowd.
Read More: $55 Bn London-based Hedge Fund Invests in Crypto
According to research from Grand View Research, it is estimated that neobanks will take up a market size of over $722.6 billion by 2028. In 2020, the global neobank market cap was at around $47.1 billion.
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