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If you live in the U.S. , chances are you employment apps like Venmo and Cash App to give back your friend or split the broadside with your roommates . Lydia is a French startup that also turn requital into a peregrine consumer app and service .
Now , after reaching 8 million users , the company finds itself in an interesting position . Does it want to add more financial services to grow its mediocre taxation per user ? Or does it want to simplify its app to make certain that as many people as possible consumption Lydia to send and encounter money from their speech sound ?
The company has essentially make up one’s mind that it does n’t want to pick one option over the other . That ’s why Lydia is launching a challenger depository financial institution , Sumeria , and splitting itself into two apps — Lydia for match - to - peer payment and Sumeria for people who are looking for a mobile - first bank account .
“ We ’re lofty to announce the launching of our European banking project , Sumeria . It ’s the same company , Lydia Solutions , that is found a banking project , ” Lydia ’s co - laminitis and general coach , Antoine Porte , evidence TechCrunch .
The decision makes sense if you ’ve been usingLydiafor more than a couplet of years . After raise € 235 million ( $ 255 million at today ’s commutation rate ) and focusing on increase , the company decided to refocus on monetization in former 2022 and 2023 .
The result has been a mixed bag as Lydia grew larger and its app became more complicated . While most users had been using Lydia for quick mobile payments , the company keep state its user that they could also use it as a bank score with a dedicated account number and a Visa debit lineup . The company also offersstock and crypto trading , small loans , savings accounts , cash back and more .
Two million substance abuser are now using those advanced feature of speech , and some of them even started pay for a monthly subscription — the party says that this part of the company is profitable . But during that process , Lydia inadvertently alienated part of its drug user stem — it was no longer as bare to use as it used to be .
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That ’s why Lydia is trying to bring clarity to its offer . A few workweek ago , the companylaunched a 2d app , simply ( and confusingly ) called Lydia , dedicated to peer - to - peer payments . Existing Lydia users who just require to send money with their phone and make money pot should swop to this new app . Hopefully , this will be the last puzzling move .
As for Lydia ’s original app , the company is completely changing its approach to mobile banking and launching Sumeria , a European contender bank . It ’s a new name and a novel start .
This move comes a few calendar month after communications expert and influencer Anne Boistard gathered complaint from former Lydia employees for her Instagram account , Balance Ton Agency .
Porte and Lydia ’s co - founder and president , Cyril Chiche , admitted that they made mistakes in the past . “ Nothing new was released . These are things that we ’d already processed internally , ” Chiche said . Now , the troupe wants to move on and the new brand is part of this process .
“ We already had this idea [ of rebranding ] in psyche . It was already in the work . But all that of course helped us move on to something more serious . We were criticized for the way we acted as a scrappy startup , ” Porte said .
All of Lydia ’s banking feature have been carried over to Sumeria . Users get a bank chronicle with a dedicated IBAN to pick up money and make SEPA payment , as well as a debit entry batting order that they can control from their earphone . The company believes it can make a good depository financial institution account than traditional banking institutions . This rake is remindful of the previous undulation of European and British challenger bank , such asN26,MonzoandStarling Bank .
“ banking concern act upon for their own pastime before those of their customers . It does n’t use technology in an effective manner , ” Chiche told TechCrunch . “ Online banking is a software program front goal for processes and organizations that are clearly out-of-date and therefore very expensive to run . ”
Sumeria bring a new logo , some new calling card excogitation and a complete mobile app redesign with a simpler main filmdom . You ’ll see your card in a customizable digital wallet on the app home screen door , your main account and its balance at the top , and your most recent dealing at the bottom .
you’re able to scroll down to see all your accounts or scroll up to jab a bit more in your dealing history . There ’s no computer menu at the bottom of the screen to switch from one tab to another . Sumeria is also launching a web interface so you could see your balance and transactions without have to add the app , or if you want to use a estimator .
What ’s dissimilar from other contender banks is that Sumeria wants to simplify the way you manage money . People will make 2 % on their cash balance ( 4 % for the first three month ) as long as they practice their Sumeria visiting card at least 15 times per month — your money does n’t have to be segregate to a separate rescue report .
“ We render interest for all your accounts . You do n’t have to put money in this or that account , ” Porte enunciate . “ There are presently € 500 billion of deposit that do n’t generate any pursuit in personal current story in France , ” Chiche say .
Unlike Revolut , Sumeria will centre exclusively on the European grocery store so that people who live in France , Germany or Spain feel like they ’re using a French , German or Spanish coin bank account . “ Their vision was international , not European . The evaluation required to erect so much money made them promise too much , ” Porte said .
With this young name , the ship’s company hopes people will take Sumeria more gravely and take using it as their primary bank story — that ’s the other reasonableness for the rebranding . That ’s also why the company will open a store in Paris this summertime where people will be capable to talk to Sumeria expert .
It will be a sort of cant branch , but without the usual offices that you could find in camber branches . It will work more like the genius bar in Apple stores .
Lydia has set ambitious goals with Sumeria . The party plans to enthrone € 100 million in its new speculation and hire 400 people over the next three years . Sumeria wants to reach 5 million client by 2027 .
