Top 10 fintech startups in Europe

Check out the 10 most successful fintech startups in Europe

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Top 10 fintech startups in Europe. Source:

The introduction of technology-based innovative financial solutions has taken over the payment landscape across the globe. In Europe, with its open banking infrastructure, the fintech industry is flourishing. Moreover, the recently released EU Digital Finance and Retail Payments Strategies bring Europe another step forward to tearing down cross-border barriers and completing the Digital Single Market for financial services.

The list below features 7 European fintech unicorns, as listed by CB Insights and 3 prospective companies that were differentiated by multiple factors such as growth rate, corporate financial health, market strength, etc. The two of them are featured in CB Insights list of 50 future unicorns, while all three are among the top 10 of the FinTech50 2019, which charts the biggest and most influential FinTech businesses in Europe.

Please, mind that the top UK startups are not part of our today’s review, since PaySpace Magazine Global has already prepared a list of the best British fintech startups last month.

1. Klarna, Sweden. Market cap: $10.65 billion

Founded fifteen years ago, one of Europe’s largest neobanks is providing payment solutions to 85 million consumers across 200,000 merchants in 17 countries. It specializes in online financial services such as payment solutions for online storefronts, direct payments, post-purchase payments, and installment plans in a one-click purchase experience. At the same time, Klarna assumes all credit and fraud risk for e-stores. Currently, Klarna is the highest-valued private fintech in Europe and the 4th highest worldwide.

Recently, the challenger bank announced the launch of its redesigned App, which enables users to shop at any store or brand online with installment payment options. Content is personalized based upon consumers’ interests, favorite stores, and previous shopping behavior. The app has more than 12 million monthly active users worldwide, with 55,000 daily downloads. It also features a unique “buy now, pay later” loyalty program, Vibe, which rewards consumers who pay on time.

2. N26, Germany. Market cap: $3.5 billion

This ambitious German digital bank decided to take a chance at fully-fledged mobile banking when the startup employed less than 20 people who have just closed out their first $10 million Series A funding round. This year, the bank disclosed having 5 million customers across 24 European markets and the U.S. The next foreseen expansion will be to Brazil. There are now 1,500 employees at N26 across five offices — Berlin, New York, Barcelona, Vienna, and São Paulo. Sadly for British customers, N26 recently announced that it would no longer be able to operate in the country as it won’t have the appropriate license after Brexit. The startup closed all UK accounts in April 2020.

N26 offers three different personal banking plans and an exclusive business bank account option for freelancers and the self-employed. The in-house app allows users to set spending and withdrawal limits, save and budget using Spaces, and instantly send money with MoneyBeam.

3. wefox Group, Germany. Market cap: $1.5 billion

wefox offers a digital all-in-one insurance solution with the help of Artificial Intelligence (AI). Its digital marketplace serves customers, brokers, and insurance companies, offering an efficient way to manage both insurance and financial products and back-office procedures. By the broker mandate granted by the individual clients, wefox has the right to request their contract data from the insurance companies and show it in the app. This process has been automated and digitized so that customers always see the most recent contract data.

Founded in November 2014, wefox was created by the Swiss brand FinanceFox. Since launching in 2015, wefox Group has grown its sales to over $100 million and with nearly 400 employees serving more than 500,000 customers in 6 countries, wefox Group is now Europe’s leading insurtech.

4. Deposit Solutions, Germany. Market cap: $1.13 billion

Deposit Solutions is a globally recognized company that offers an open banking platform for deposits. Its proprietary Open Banking technology provides an infrastructure that benefits banks and savers alike. Deposit Solutions earned the unicorn status last year, after securing a $55 million investment from Deutsche Bank. Founded in 2011, the company has already mediated more than 25 billion Euros in deposits. Deposit Solutions operates two B2C channels – ZINSPILOT (for German customers) and Savedo (for international operations). ZINSPILOT was named “Best Deposit Marketplace” by BankingCheck four years in a row. With over 150 banks connected to the platform, the company is able to reach more than 30 million depositors from various countries.

5. Avaloq Group, Switzerland. Market cap: $1.01 billion

Avaloq is a Swiss fintech that develops and provides software for core banking. Its proprietary software system, Avaloq Banking Suite, is used by more than 150 banks and wealth-management firms worldwide. The Avaloq software is currently used to manage around 4.5 trillion CHF of client assets. Besides traditional currencies, the company is working on crypto and blockchain-based solutions. Its next aim is to offer financial organizations the chance to tokenize non-bankable assets like real estate, collectibles, or non-regulated funds using the ‘smart contracts’ technology.

6. Numbrs, Switzerland. Market cap: $1 billion

Numbrs is not a bank and does not offer its own financial products. This startup offers a multi-banking app powered by data-driven analysis and smart algorithms. The app already boasts having over 2.3 million downloads and 1.8 million linked bank accounts. After successfully running the commission-based brokerage model for several years in Germany, this Swiss unicorn has announced the change of its business model. From the 4Q 2020, the personal finance app “Numbrs” will be operated as a paid Software-as-a-Service subscription model in Germany and the UK.

7. Mollie, Netherlands. Market cap: $1 billion

This Amsterdam-based payment services provider has recently raised a €90m Series B funding round, making it the freshest unicorn on the European stage. The company offers a single API with the most popular payment methods for businesses of all sizes. Founded in 2004 and best known in the Dutch, Belgian and German markets, Mollie has seen a big increase in payment volumes and acquired many new clients during the coronavirus crisis, as many small businesses had to quickly move to serve customers online. However, Coronavirus is not the only growth factor. Mollie caught the rising e-commerce tide long before the crisis. The company, which has more than 100,000 customers, says it has seen processing volumes increase by 1000% in Germany in the past year and 500% in France.

8. Raisin, Germany. Market cap: over €500 million

This German fintech represents a savings and investment marketplace that connects retail customers with banks looking to expand deposit reach. Goldman Sachs- and PayPal-backed Raisin is one the most prospective European fintechs. It has already placed around $25 billion in deposit products for over 260,000 customers with more than 90 partner banks across Europe through the fintech’s savings platforms. This summer, Raisin also launched a tailored business solution for US banks and credit unions looking for cost-effective new deposits. The ‘Savings as a Service’ software enables financial institutions quickly and easily to offer customized time-deposit products with a range of flexible features.

9. Alan, France. Market cap: €314 million

Alan is tackling a very specific industry: the digital health insurance market in France and across Europe.

This year, the French startup raised a $54.4 million (€50 million) Series C funding round. Overall, Alan has raised $136 million (€125 million) over the past four years. Instead of partnering with an existing insurance company, the InsurTech has obtained its own official health insurance license. The startup’s ultimate goal is to become a health hub. Therefore, alongside the insurance offering, Alan has launched a directory of nearby doctors called Alan Map. It also facilitates telemedicine appointments, keeps records of your scheduled doctor visits, etc. Alan currently covers 76,000 people. That represents around $63 million (€58 million) in revenue.

10. Tink, Sweden. Market cap: €415 million

This Swedish startup was founded in 2012. Its main product is a multi-purpose single API that offers one access point to financial data from across Europe as well as the ability to offer insights and actionable advice. The solution serves both major financial institutions and startups at the incipient stage. Tink now operates across 14 markets, has integrated 2500 banks and institutions, and reaches 250 million bank customers across Europe. The company claims to process over 10 billion transactions annually.

A recent acquisition of OpenWrks’ aggregation platform significantly increases Tink’s connectivity to banks and financial institutions across the UK. It’s estimated that OpenWrks currently handles more than a third of the UK’s active user base for account aggregation. Other efforts to establish a pan-European presence include the acquisition of Spanish Eurobits Technologies, the leading provider of credit solutions Instantor, and many more strategic partnerships. Tink’s active expansion is made possible with the help of a €90 million investment round held in 2020.


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