Estonian Fintech takes on Neobank Giants

Payoro is a new contender on the fintech scene with its sights set on the neobank giants.

In recent years, the financial technology (fintech) industry has seen a rise in the popularity of neobanks, or digital-only banks, offering consumers a more convenient, flexible and affordable alternative to traditional banks. One such neobank is Revolut, which has become a major player in the industry, with over 15 million customers and a recently valued value of $33 billion. However, a new competitor has entered the ring: Payoro, a fintech service provider based in Tallinn, Estonia, is developing a banking product to compete with Revolut.

Payoro aims to connect consumers with financial institutions, providing a platform for banking services such as individual IBAN accounts, payments and currency conversion. The company’s flagship product, currently in beta testing and set for a full release in the near future, is a digital-only bank account with no monthly fees, instant payments and access to multiple currencies.

Payoro aims at the European market, especially the EU and EEA areas, and positions itself as a viable alternative to traditional banks and established neobanks such as Revolut. The company believes that its user-friendly interface, competitive fees, and commitment to security and compliance will set it apart from its competitors and attract a significant customer base.

The Rise of Neobanks

Neobanks have seen a rise in popularity over the past decade, driven by advances in technology, changing consumer preferences and increased competition in the financial services industry. According to a report by Accenture, neobanks in Europe have grown from 3 million customers in 2015 to over 43 million in 2020, a staggering increase of over 1,300%. During the same period, neobanks have also seen a significant increase in funding, with investments reaching $12.5 billion in 2020, up from $2.3 billion in 2015.

One of the main advantages of neobanks is their ability to offer customers a more personal and practical banking experience. Unlike traditional banks, which often have strict opening hours and require customers to visit a physical branch, neobanks operate entirely online and offer 24/7 access to banking services via mobile apps and websites. This convenience is particularly appealing to younger consumers, who are more likely to use digital banking services than older generations.

Another important advantage of neobanks is their competitive fees. With lower fixed costs than traditional banks, neobanks can offer customers lower fees and higher interest on deposits. This has led to increased competition in the banking industry, with traditional banks reacting by launching their own digital offers or collaborating with neobanks to offer their customers a wider range of services.

Challenges facing Neobanks

Despite their popularity and growth, neobanks also face a number of challenges in the industry. One of the main challenges is achieving profitability. While neobanks are able to offer lower fees than traditional banks, they also face higher customer acquisition costs due to the need to invest heavily in marketing and technology. In addition, neobanks typically offer a narrower range of products and services than traditional banks, which can limit their revenue streams.

Another challenge that neobanks face is compliance with regulations. As financial institutions, neobanks are subject to strict regulations and oversight by regulatory bodies, which can be costly and time-consuming to navigate. In addition, neobanks must also comply with anti-money laundering (AML) and know-your-customer (KYC) regulations, which can be complicated and require significant resources to implement and maintain.

The Payoro benefit

Despite these challenges, Payoro is confident that they can compete with established neobanks and traditional banks in the European market. The company’s focus on user experience and reasonable fees is key to its success, as it aims to provide a banking platform that is easy to use and accessible to everyone.

One advantage that Payoro has over some neobanks is its connection to traditional financial institutions. By partnering with established banks, Payoro is able to offer a wider range of banking services, while maintaining a focus on digital convenience and competitive pricing. This also helps to meet the challenge of regulatory compliance, as the partner banks are responsible for ensuring that Payoro meets all necessary regulatory requirements.

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Company name: Payoro
Contact person: Michael Bingham
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Address:Maakri tn 19/2
City: Tallinn, 10145
Country: Estonia
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