French startup Lydia, known for its mobile payment app, is making a bold move by launching a challenger bank called Sumeria. With 8 million users already on board, the company is splitting itself into two apps – Lydia for peer-to-peer payments and Sumeria for mobile-first banking.
The decision to launch Sumeria comes after Lydia’s focus on growth led to a more complicated app with advanced features like stock and crypto trading, small loans, and savings accounts. While some users embraced these features, others found the app less user-friendly.
To bring clarity to its offerings, Lydia introduced a new app dedicated to peer-to-peer payments, while Sumeria offers a full-fledged banking experience with a dedicated IBAN, debit card control, and a simplified mobile app design.
Sumeria aims to simplify money management by offering 2% interest on cash balances and a seamless banking experience. Unlike other challenger banks, Sumeria will focus exclusively on the European market to provide a localized banking experience for users in France, Germany, and Spain.
With ambitious goals to reach 5 million customers by 2027, Lydia plans to invest €100 million in Sumeria and hire 400 new employees over the next three years. The company’s rebranding and launch of Sumeria signify a new chapter in its journey towards providing innovative financial services to its users.