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German internet bank closes accounts because customers use ATMs too often

Categories : Cash connects people
June 7, 2016
Tags : ATM, ATMs, Availability, Cost of transactions, Europe, User-friendly
German fintech closes bank accounts because customers withdraw cash from ATMs too often.
Guillaume Lepecq

German fintech Number 26 provoked an uproar on social media last week when it announced that hundreds of accounts would be closed.

Number 26 is an app-based startup, which relies on Wirecard, as the underlying licensed bank. It includes PayPal cofounder Peter Thiel amongst its investors and claims over 160,000 accounts. The website boasts “Europe’s most modern bank account” and free cash withdrawals.

The company announced that account closures were due to the fact that customers were going to the ATM too frequently, on average 15 to 30 times a month. While withdrawals are free, Number 26 covers the transaction fee of $1.5 to €2 in Germany.

Read further information here (in German)