Fintech

Challenger bank N26 hopes cashback offering will give its US launch a competitive edge

April 4, 2019, 6:12AM EDT

German digital bank N26 is considering an “earn-as-you-spend offering” as part of its U.S. launch later this year, Business Insider writes. While not common in Europe, cashback offerings are very commonplace in the U.S, and may be key in luring American customers.

Nicolas Kopp, CEO of N26 in the US, would not give specific numbers but said the programme will be unlike other traditional point programmes offered by credit card issuers.

Currently, the fintech firm only offers a 0.1% cash-back option for its N26 business-account clients; regular clients are not offered any type of spending incentive.

“We are thinking through an alternative to how we can allocate to that side of the US audience that is very aware of what they get in return for using a specific card or banking product,” Kopp said.

N26 raised $300 million in Series D in January, bringing its valuation to $2.6 billion and making it the top fintech firm in Europe. It is also backed by Peter Thiel.

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