Teen banking app Vybe sent into forced liquidation

Vybe closes the curtain. A French teen banking fintech company was forced into liquidation in mid-July, according to Les Echos. It had 40,000 customers, including adults who would be encouraged to switch to Lydia and minors to competitor Kard.

too fragile economic model

The Vybe mobile app offered bank account services, a free payment card with cashback and contactless mobile payments, and features for parents to keep track of their child’s activity.

The business model was based on interchange fees (what the merchant’s bank pays to the cardholder’s bank) and fees charged on transactions from partner merchants in the app. Which requires many volumes.

Founded in 2019, Vybe has yet to reach the size it needs to survive. In total, Vybe has raised €4.8 million since its inception and was looking to secure a new round of funding.

Pixpay acquired by Goenri

His difficulties illustrate the stalemate of the completely free model that Vibe adopted as the last actor. All of its direct competitors offer premium subscriptions. A Kard subscription costs €4.99/month, Pixpay costs €2.99/month, and Xaalys has a free version and a premium version for €2.99/month. These apps, positioned in the teen niche, are also competing with generic neobanks that have launched offerings dedicated to this purpose.

Pixpay was bought out in July by its British rival GoHenry, also with a presence in the United States, while it was also looking for fundraising funds. The French fintech, established in 2020, claims 200,000 customers and will keep its brand. She is preparing to launch a comparator of financial products on which she will receive rewards in order to diversify her sources of income.

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