N26 shifts to interest-driven banking

This shift means N26 increasingly makes money like a real bank, not just a slick card app. Interchange on card spend is thin and only pays when customers transact, while deposits create a larger, steadier earnings pool that can be invested into treasuries and loans. With revenue estimated at $339.4M in 2023 and $482M in 2024, the balance sheet became the main engine behind faster growth and profitability.1 2 3 4

• The old model was inherently capped. Neobanks leaned on interchange worth roughly 0.7% to 1.5% of payment volume before costs, which left them heavily exposed when rates were near zero and customer acquisition got more expensive. Deposit spread revenue changed that math by monetizing idle balances, not just swipes.1 3
• This is part of a broader neobank reset. Monzo reached $1.1B of gross revenue in 2023 with 51% coming from interest, split between loans and deposits, and only 21% from interchange. Across Europe, higher rates were the main reason revenue growth reaccelerated for Monzo, Starling, Revolut, and N26.2 3
• The product implication is that N26 now benefits more from becoming a primary account. A customer who salary deposits, keeps savings in app, and uses lending products is far more valuable than a customer who only spends on the card, because balances can earn spread every day whether or not the card is used.1 4

The next phase is turning deposit funded profitability into a denser banking bundle. As N26 adds more savings, investing, and lending behavior on top of the account, revenue should depend less on payment activity and more on how much of a customer’s financial life sits on its balance sheet.2 3 4