N26 Regrets Expanding Instead Of Investing In Crypto Payment Solutions

2022-01-12 23:41:27
N26 Change Of Heart

The German Berlin-based bank N26 revealed their plans to develop crypto payment services for their customers.

This news come just a couple of months after the bank from Berlin stated their regret for pursuing an expansion in the United States, instead of exploring with crypto.

According to the co-founder of N26, Maximilian Tayenthal, the bank promises to its millions of customers that it will have crypto by the end of the year.

Clearly showing regret for not pursuing this venture sooner, the co-founder is eager to tackle blockchain vigorously in 2022.

Should we have built trading and crypto instead of launching in the US? In hindsight, it might have been a smart idea.Maximilian Tayenthal | Co-founder - N26 Bank

It is safe to say that as a result of this missed opportunity, in 2021 the bank already stopped providing services in the UK. And that is in addition to the plan to shut down the U.S. branch by the end of 2022 as well.

As a result, the bank fully diverted its resources towards developing the proper platform and features for incorporating crypto payments. According to the company, this should be done by the end of 2022, and perhaps even sooner.

Clear Mistake

Consequently, it only takes one look at Revolut, the biggest rival of N26 in Europe, to realize why the Berlin bank has its regrets.

That is because Revolut started offering crypto trading services about three years ago, and this substantially increased the company’s value.

Especially when we compare it to N26. To put things in perspective, Revolut is estimated at around $24 billion at the moment of writing.

N26 on the other hand is estimated at around $8 billion, and that is mainly thanks to last year’s funding round that netted little over $800 million for the Berlin bank.

With these numbers in mind, it is clear why the sudden change of heart of the management team of N26 bank, and the desire to develop and provide crypto payment services.

However, considering that the blockchain tide is just catching on, it is definitely better to enter the crypto game later, rather than never.

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