N26 launches N26 Installments, to settle past payments in installments
N26, The Mobile Bank, today announced the launch of N26 Installments, a new flexible payment feature which will oer eligible customers in Germany the option to split past purchases into installments to be paid back over time, instantly giving them access to up to 82.71% of the original purchase price. N26 Installments will bring customers a new level of financial freedom, confidence and flexibility, giving them the power to manage their spending retroactively in the N26 app and access funds straight away if needed, all at a fair and transparent cost, with no late payment fees.
The new product addresses a growing customer need. According to a research carried out by N26, 45% of customers in Europe would consider splitting payments for a large purchase into installments, while 16% would consider taking a loan, and only 12% paying with a credit card.
Gilles BianRosa, Chief Product Ocer at N26: “We know that consumers tend to approach lending and credit products with care, especially because of concerns that these may encourage them to spend more than they can aord to, building up large debts that they may struggle to pay o.3 We see N26 Installments as a responsible alternative to traditional loans or buy-now-pay-later products as it focuses on past purchases already paid for in full. N26 Installments helps customers go back in time and split the payment retrospectively to unlock financial flexibility immediately as it is needed.”
With N26 Installments, account holders in Germany will get the option to pay for purchases of €50 to €5004 made at eligible merchants in the past 4 weeks in easy-to-manage installments. With the option to split monthly payments over 3 to 6 months, they will be able to select a plan that suits their needs, with transparent pricing and interest rates5 displayed clearly in the app.
With this, cash can be made available instantly for times where more financial flexibility is needed, and customers will be immediately reimbursed the original cost of the chosen purchase, minus the first installment. Payments will be deducted automatically from their account every month, and reminders will be sent the day before a payment is due so that it’s never a surprise. Eligible customers will always have the possibility to pay installments o early if they wish, with no extra fees.
“Our recent research6 shows a growing sense of financial optimism among consumers, with many customers planning to make purchases in the coming months. 2 in 5 Germans plan to spend money on clothes and fashion and 22% of them on new tech items such as TV and gaming consoles in the next 3 months. As Europeans/Germans loosen their purse strings, we believe that N26 Installments will allow our customers to spend confidently, yet responsibly, with a new way to manage their money with N26 with freedom and flexibility,” commented Georg Hauer, General Manager of DACH and Northern Europe at N26.
More information on N26 Installments is available here.