Lydia, which started out as a peer-to-peer payments platform, teamed up with French fintech Cashbee to offer savings accounts, per TechCrunch. Users can open savings accounts through a mobile app and transfer money back and forth between bank accounts and their Cashbee accounts.
The savings accounts on Lydia’s platform are at a competitive disadvantage to Cashbee, but Lydia’s extensive financial services could offer a streamlined user experience. Lydia’s savings account comes with an interest rate of 0.6% and a 2% introductory rate for the first two months. But opening a savings account with Cashbee directly gives users the same introductory rate for three months. Users also have to deposit at least €1,000 ($1,140) with Lydia’s savings account offering, while Cashbee has a minimum of just €10 ($11.40), giving it a wider addressable market. That said, Lydia’s existing customers who open a savings account don’t have to download a separate app like Cashbee and can have all their financial services in one place.
The partnership is mutually beneficial—giving Cashbee access to a larger customer base and helping Lydia become a fintech super app.