With its U.S. launch two years in the making, 100,000 customers are on N26’s U.S. waiting list. A full launch is expected to take place later this summer.
N26, a German digital banking startup announced, it has commence operations in the United States through a phased rollout of its app-based checking account and debit card.
N26’s U.S. subsidiary N26 Inc, will start making its services available to the 100,000 customers on its U.S. waitlist over the next few weeks and will fully launch to the public later this summer, said the startup.
The German startup is one of Europe’s most well-known “neo banks” which sprung up in the past few years and which offer more user-friendly digital services.
It has already amassed 3.5 million customers in 24 European markets since its 2015 launch and has raised more than $500 million from investors including Insight Venture Partners, Peter Thiel’s Valar Ventures and China’s Tencent.
While N26 holds a banking license in Europe, in the U.S., it is launching through a partnership with Axos Bank, which is a member of the Federal Deposit Insurance Corporation.
“As a long-term strategy I could see us getting a license (in the U.S.), but we are not in a rush,” said Nicolas Kopp, CEO of N26 Inc.
Its U.S. app has many of the user friendly features that has made it hugely popular in Europe, including the ability to create sub-accounts it calls “spaces”, said Kopp while adding, “the account will have no minimum balance requirement or monthly charges”.
Over the summer N26 will start offering two free withdrawals per month at ATMs nationwide; it will later introduce a premium account, said the company.
With its U.S. launch two years in the making, N26 already has 100,000 customers on its U.S. waitlist.
N26 is expected to face competition from local U.S. banks and their digital offshoots as well as other fintech startups which have recently started offering banking services.