The Germany-based neobank launched the N26 Business Metal account, a premium business account for entrepreneurs, freelancers, and the self-employed, per Crowdfund Insider. For a €16.90 ($19) monthly subscription fee, the account offers 0.5% cash back and a stainless steel Mastercard debit card.
Additional perks are catered toward business travelers: It comes with mobile phone and emergency medical insurance options, as well as no foreign transaction fees. Business Metal customers also have access to standard N26 features including automatic spending categorization and its flagship “Spaces” subaccount feature, which allows users to separate savings for dedicated purposes.
Business Metal joins two existing business accounts from N26 that are also geared toward freelancers and the self-employed, though Metal stands apart for its higher-value perks — and its higher monthly price tag:
- N26 Business is a free account that offers 0.1% cash back on all purchases. It allows up to five free withdrawals per month in the eurozone, but it doesn’t offer travel or lifestyle insurance options.
- N26 Business You costs €9.90 ($11.13) per month and also offers 0.1% cash back. It additionally offers unlimited free ATM withdrawals worldwide in any currency, as well as insurance options.
N26’s increasingly robust suite of specialized business offerings will help it build a name for itself in the business banking market, as well as move it closer to profitability.
N26 is building a niche among the growing market of freelancers and self-employed consumers. Workers’ demand for financial tools that fit their unique needs will rise along with the global gig economy: It generated $204 billion in customer volume in 2018, and is expected to reach $455 billion by 2023, per a 2019 Mastercard estimate — and though the effects of the coronavirus pandemic could dent some of that growth, the opportunity remains big.
N26 is already leveraging this trend, with all three of its business bank accounts aimed at these groups. The specialization also distinguishes N26 from UK neobank Starling, which did roll out sole trader offerings two years ago, but has recently appeared more focused on building out offerings for small- and medium-sized businesses. N26 should continue to differentiate its offerings by adding and emphasizing targeted perks. A wide stable of features — which it’s already on its way to building, with everything from money management tools to travel insurance — could effectively cater to the breadth of needs among freelancers and self-employed customers and help to simplify money management.
Adding more subscription-based accounts on top of free offerings will push N26 closer to profitability. Offering multitier subscriptions is a common strategy among neobanks to generate revenue and secure primary account status: Consumers or businesses that pay for an account are likely to use it as the primary account to deposit their funds, or transact with the most.
Despite some coronavirus setbacks, including a dip in user growth in March and cost-cutting measures, N26 still has ambitious plans to grow its consumer-facing segment, and its emphasis on that along with building out its business offerings will open up more customer acquisition opportunities, and in turn, more diverse revenue opportunities.
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