N26 launches a flexible payment solution to split past purchases

The N26 online bank continues to expand its product portfolio and Enter the world of credit. The digital entity today announced the launch for its clients in Spain of ‘N26 in Installments’, a flexible payment solution that allows purchases made up to four weeks before to be divided into three to six installments, giving instant access up to 82% of the original purchase price. The functionality will give N26 customers greater financial flexibility and security, helping them manage their spending retroactively directly through their app, without interest or late payment fees.

Despite the similarities with the model Buy Now Pay Laterthe alternative differs in that it only allows splitting those transactions that have been previously paid, thus avoiding over-indebtedness and spending beyond the user’s possibilities. Also, the new product responds to a growing need of customers. According to a study carried out by N26, 45% of customers in Europe would consider the possibility of dividing the payments of a large purchase in installments, while 16% would value the possibility of requesting a loan and only 12% would pay with a card of credit.

Gilles BianRosa, Chief Product Officer of N26, points out that «We know that consumers tend to be cautious when purchasing a credit product due to the fear of spending more than they can afford and going into debt. We believe that ‘N26 in Installments’ is a responsible alternative to traditional consumer loans or Buy Now Pay Later products as it focuses on past purchases already paid in full”.

With ‘N26 a Termos’, available to the bank’s customers in Germany from July 2021, account holders in Spain will have the option to pay for their purchases valued between 20 and 200 euros and that they have made in the last four weeks in easy to manage quotas. With the option of dividing the monthly payments between three and six installments, they will be able to select a plan that suits their needs, with an Annual Equivalent Rate (APR) of 7.49% to 13.99% and a simulation of future payments that is shown in a clear and transparent way in the app before executing the operation.

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The solution allows customers have cash instantly for those times when you need greater financial flexibility. By dividing a payment in installments, they will immediately receive a refund of the original cost of the chosen purchase and the charge of the first installment. Payments will be automatically deducted from your accounts each month and reminders will be sent the day before the payment is due so this charge never comes as a surprise.

Marta Echarri, general director of N26 for Spain and Portugal, considers that “’N26 in Installments’ will allow our customers to make purchases with confidence and flexibility, but also with responsibility. In our quest to improve and simplify people’s relationship with money, we seek to provide them with a new way of managing their expenses so that they can manage their monthly budget with total comfort.”

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