N26 adds crypto trading with new Bitpanda integration • TechCrunch

Challenger bank N26 launches a new trading feature in its app – N26 Crypto. Users will be able to easily trade crypto assets using funds in their N26 account. Behind the scenes, N26 works with Bitpanda to handle trading and custody.

N26 will slowly roll out N26 Crypto across Europe. At first, only some users in Austria will have access to the new feature. Other countries should get the feature sometime in the next six months.

N26 allows you to buy, sell and hold 100 different crypto assets. The startup plans to add another 94 cryptoassets later down the road. And I’m sure the company will soon expand into stocks and other asset classes.

N26 Crypto will be accessible from the second tab, which has been renamed “Finance”. From this screen you will find your slots – these are sub-accounts that you can use to put money aside in another pocket of money. Spaces can also be used as shared accounts with someone else.

Below the list of spaces is a new “Trading” section with your crypto portfolio. N26 shows all your crypto assets, the value of your positions and how they have changed over the last 24 hours, week, month or year.

When users want to buy or sell some cryptocurrencies, they can press the buy or sell button, select a crypto asset (or search for it) and enter an amount. N26 shows both the exchange rate and how much you have to pay in fees.

Image credit: N26

N26 plans to charge 1.5% for bitcoin trades and 2.5% for all other cryptocurrencies. It is the same fee that users pay in Bitpanda’s own app. Users who pay €16.90 per month for N26 Metal will pay 1% and 2% in transaction fees on bitcoin and other cryptocurrencies respectively.

The biggest advantage of N26 Crypto is that it is directly linked to your existing bank account. You don’t need to upload funds to another trading account, switch to the Bitpanda app (or any other app) and then start trading. Similarly, when you withdraw money with N26 Crypto, you will receive EUR in your N26 main account – no need to transfer money back to your bank account.

N26 is not the first fintech startup to build a deep integration with Bitpanda. French payment app Lydia also partnered with Bitpanda to introduce the ability to trade stocks, precious metals, cryptocurrencies and ETFs on its app last year. In my experience it works very well.

Last week, N26 shared its financial results for 2021. While gross revenues grew by 50% to more than €180 million, operating costs also grew at a rapid pace, resulting in a net loss of €170 million.

Of course, N26 has also raised hundreds of millions of euros. Thanks to these deep pockets, the company has plenty of time to figure out how to get more revenue from users while keeping operating costs under control. Since N26 and Bitpanda have likely agreed to share revenue from N26 Crypto, the new feature should help the company’s bottom line.