Mobile Payments

French Startup Lydia Says It Wants To Take On PayPal

A new startup is taking aim at PayPal. This time, it’s French startup Lydia, which recently raised a $16.1 million round (€13 million).

According to TechCrunch, the round was led by CNP Assurances, with existing investors XAnge, New Alpha AM, ODDO BHF and Groupe Duval also participating.

Lydia is now the mobile payment leader in France, where it began by offering new users free and instant transactions between friends. Now, it allows users to pay in store, online and more with their account. Customers can even use it to pay on Cdiscount, France’s second-largest eCommerce website behind Amazon.fr.

And for places that don’t accept Lydia, the company has launched a credit card connected to the user’s Lydia account. It allows customers to replenish their balance with their personal IBAN, activate or deactivate features in real time and more. There’s also the option to enable the card and add it to Apple Pay.

Lydia processes around 1 million transactions per month – €25 million in monthly volume. There are more than one million registered users, with more than 2,000 people signing each day.

The company recently launched in the U.K., Ireland, Spain and Portugal. There are plans to expand even further, with Germany and Austria the next targets. The company also plans to hire more staff; there are currently around 40 employees; the startup wants to increase to 60 employees by the end of this year, and 90 by the end of 2019.

“We’ve never grown so fast,” co-founder and CEO Cyril Chiche told TechCrunch. “In 2018, we’re probably going to grow more quickly than PayPal in France.”

“What’s interesting in particular is that the growth rate for transactions is higher than the user growth rate,” he added.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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