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Through this partnership, Lydia users will shortly have access to a wide range of digital assets.
Lydia, a payment startup and app that operates out of France has launched trading services, granting easy access for all of its users to trade stocks, Exchange Traded Funds (ETF), and digital currencies. The new trading feature is made possible, thanks to a partnership with Austrian-based digital assets trading unicorn, Bitpanda.
Through the Bitpanda integration, Lydia’s customers will now have easy access to trade more than 170 digital assets, some of which are commission-free. The integration of the asset brokerage into Lydia’s payment app showcases the growing interest amongst related payment firms to take a pie in the fast-growing digital assets brokerage world.
Taking its cue from Cash App from Square Inc (NYSE: SQ), SoFi Technologies Inc (NASDAQ: SOFI), as well as Paypal Holdings Inc (NASDAQ: PYPL), Lydia started out as a payment app that forms the primary basis for which users embrace the platform. While users gain exposure to the firm’s secure payment offerings, they are then offered an additional value through the startups’ additional financial products including the savings account it launched months ago, and now, via the trading services.
The savings account pays out a 0.6% interest and was powered by Cashbee. Despite the fact that it pays a lower interest compared to what new emerging competitors like Decentralized Finance (DeFi) platforms offer, it was considered as a better alternative to holding funds in a bare account, and the product’s popularity has been showcased in the total funds.
Taking pride in itself as the first fintech to explore the broad range of digital assets offerings, Lydia has also touted its new product as one of the easiest to use compared to what is currently applicable in the market.
“If you want to buy assets right now, it’s too complicated,” Lydia co-founder and CEO Cyril Chiche told me. “Even just accessing those markets is complicated. It takes you several days to register and verify your account. After that, you have to send money. And then, there are minimum amounts.”
The Market in France Looks Ideal for Lydia, Bitpanda to Thrive
France is growing to become a major focus for startups looking for an advanced financial epicenter in Europe to fuel their expansion drives. Bitpanda falls into this category of startups.
“This collaboration is fully aligned with our mission to bring digital assets into mainstream adoption and to improve investment literacy in Europe and beyond,” Eric Demuth, co-founder, and co-CEO of Bitpanda, said in an email to CoinDesk, adding that “France is a key market for Bitpanda and this is why we are currently opening up a local office in Paris and building a local team to own the growth in the market.”
Bitpanda confirmed that it has secured the license to operate from the country’s financial regulator, AMF, making the Lydia partnership a viable head start in its integration into the local market. The Lydia-Bitpanda partnership is mutually beneficial as both firms have agreed to share the revenue that comes from Lydia users taking advantage of the trading feature, TechCrunch reports.