N26 launches N26 Installments, allowing customers to settle past payments in installments
- N26 launches a new flexible installment payment solution today to allow customers to retroactively split past purchases and pay these back over time
- The new product presents a responsible alternative to traditional loans or buy-now-pay-later products by focusing on past purchases already paid for in full
- According to research carried out by N26, 45% of respondents in Europe would consider splitting payments for a large purchase into installments, while 16% would consider taking a loan, and only 12% paying with a credit card (1).
- Starting today, eligible N26 customers in Germany (2) will be able to pay for purchases made up to 4 weeks before in 3 to 6 installments, with zero late payment fees
Gilles BianRosa, Chief Product Officer at N26: “We know that consumers tend to approach lending and credit products with care, especially because of concerns that these may encourage them to spend more than they can afford to, building up large debts that they may struggle to pay off (3). We see N26 Installments as a responsible alternative to traditional loans or buy-now-pay-later products as it focuses on past purchases already paid for in full. N26 Installments helps customers split the payment retrospectively to unlock financial flexibility immediately as it is needed.”
“Our recent research (6) shows a growing sense of financial optimism among consumers, with many customers planning to make purchases in the coming months. 2 in 5 Germans plan to spend money on clothes and fashion and 22% of them on new tech items such as TV and gaming consoles in the next 3 months. As Europeans/Germans loosen their purse strings, we believe that N26 Installments will allow our customers to spend confidently, yet responsibly, with a new way to manage their money with N26 with freedom and flexibility,” commented Georg Hauer, General Manager of DACH and Northern Europe at N26.
(1) N26 research carried out in November 2019 among 4800 participants in AT, FR, DE, IT, ES, UK (2) To be eligible, the customer needs to have registered their account in Germany, to be deemed as creditworthy by N26’s credit assessment and to have made a specific amount of transactions within the previous few months. (3) Source: N26 research carried out in November 2019 among 500 participants in FR, DE, IT, ES, UK (4) Eligible N26 customers could split several past purchases into installments, provided they total between €50 to €500. (5) Interest annual rate is between 7.49% and 11.99%, depending on the customer’s credit assessment, which takes into consideration the customer’s transactions behaviour and their creditworthiness. (6) N26 and survey partner, Sapio Research, surveyed 6,075 consumers across France, Germany, Spain, Italy, Ireland and the Netherlands in April 2021.
About N26
N26 is Europe’s leading digital bank with a full German banking license. It offers simple, secure and customer-friendly mobile banking to millions of customers in 24 markets across Europe. N26 processes over 100bn EUR in transactions a year and currently has a 1,500-strong team of more than 80 nationalities. The company is headquartered in Berlin, with offices in multiple cities across Europe, including Vienna, Paris, Milan and Barcelona. Founded by Valentin Stalf and Maximilian Tayenthal in 2013, N26 has raised close to US$ 1.8 billion from some of the world’s most renowned investors.
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