French mobile payments app Lydia has launched a new challenger bank initiative, planning to invest €100 million into this venture and hire 400 people over the next three years.
Alongside its payments app, Lydia, now recognized as an e-money institution, offers a comprehensive range of financial services to over eight million users. As part of its new strategy, the company will reposition its payments app as a straightforward peer-to-peer platform designed for quick transfers between friends and contacts.
The banking services will be separated into a new entity named Sumeria, which will provide current accounts, joint accounts, savings, credit, and investment options, along with a dedicated IBAN and associated Visa debit card. This decision to split the business aims to cater to users who prefer a simple P2P payments app without the additional banking services.
Currently, only two million of Lydia’s eight million users have explored the broader financial services offering. Sumeria aims to reach five million customers within the next three years.
To enhance its customer experience, the company plans to open a bank branch in Paris, designed similarly to the Apple Store’s Genius Bar, offering personalized guidance and support for those looking to open an account.