Online financial institutions like PayPal, Revolut, and Wise have the lion’s share of the market. They’re big international fintechs that almost everybody who’s ever had to pay another person across borders knows of. While they’re all great at what they do, local fintechs often stand out by addressing the specific needs of consumers, merchants, and small businesses in their home markets, offering benefits that global players sometimes overlook.
Let’s examine four fintechs, each offering unique benefits for consumers, merchants, and small businesses in their local markets.
Germany – N26
The move away from regular brick-and-mortar bank accounts is a trend right across Europe. Founded in Germany in 2013, N26 is a fully licensed online bank for the digital generation. It’s now present in 23 European countries and has just under 5 million active account holders. There are no branches; everything is done online. There are levels of accounts, with the premium ones having fewer fees than the others. Regardless, N26 is completely transparent about all its charges, generating an extra level of trust from its customer base. N26 also allows crypto trading, reflecting its early adoption of this technology among European digital banks.
Benefits for German Consumers
N26 can be trusted as it holds a full German banking license with deposit protection up to €100,000. As well as ATM access, customers can deposit and withdraw money at retail stores that use the CASH26 program. One-tap transfers can be done between N26 account holders via their mobile phones.
Benefits for German Businesses
Small businesses and self-employed people benefit from N26’s easy-to-open business account. It seamlessly integrates with financial tools for easy reporting. There’s a competitive fee structure with cashback rewards, physical and digital Mastercards, and international transfers via a partnership with Wise.
Canada – Interac
Interac has been around since 1983, and no, it’s not an online bank. Instead, it’s an interbank network. This means it processes debit card payments directly from the payer’s eligible bank account and does not hold anyone’s money in dedicated accounts.
It has played a central role in debit payments in Canada for over 40 years and, through strategic partnerships and innovation, has grown to be one of the most trusted digital payments companies in the country.
Benefits for Canadian Consumers
Interac is accepted by over 2 million retailers in Canada. It also partners with the NYCE network in the US, allowing for cross-border transactions. It’s not credit-based; it only uses the consumer’s own funds, eliminating the risk of falling into debt. Canadian debit cards that support the Interac payment network can be used at an ATM, via tap and pay, and in a mobile wallet. There are even online Interac casinos in Canada, where you can deposit and withdraw using Interac online payments.
Benefits for Canadian Merchants
Merchants welcome Interac as it has lower transaction fees than most other financial institutions, both local and international. Interac arranges fast settlements, meaning the merchant gets their payment quickly. It’s the dominant debit card payment service in Canada, offering a larger customer base to the merchant.
Sweden – Klarna
In 2017, Sweden launched its online bank Klarna. Its core markets are Sweden, Germany, and the UK. As it doesn’t yet hold a US banking license, it partners with other local fintechs like WebBank in Utah. Klarna has 100 million active customers globally and serves over 700,000 merchants. Its point of difference is in its buy now, pay later (BNPL) service. Customers can purchase a good or service and pay it off interest-free, either over four regular two-week payments or in full in 30 days. Another option to pay within 6–24 months is available, but at a market rate.
Benefits for Swedish Consumers
Klarna customers have the financial freedom to shop at thousands of stores worldwide without having to pay in full at the time of purchase. This flexibility allows them to have their item immediately and up to two years to pay for it. Klarna is transparent and upfront about the fees and encourages consumers to go with the interest-free options whenever possible.
Benefits for Swedish Merchants
The BNPL service pays the merchant immediately and takes over all risk, dealing with any defaults or fraud itself. This offers merchants the opportunity to make more sales in less time. Klarna’s heavy millennial and Gen Z customer base, who prefer the BNPL option to credit cards, predominantly comprises online shoppers and those actively looking for partnering merchants. Klarna seamlessly integrates with other e-commerce and point-of-sale systems.
Brazil – Nubank
Also established in 2013, Nubank aimed to serve those who were unable to open traditional bank accounts. Nubank’s strategy emphasizes customer access and affordability, particularly in markets where banking fees and interest rates are traditionally high. Roughly 60% of the adult Brazilian population has a Nubank account. The products are available across Latin America and are especially popular in Brazil, Mexico, and Colombia.
Benefits for Brazilian Consumers
For many previously excluded from traditional banking, Nubank provided an accessible alternative. Nubank helps them to positively rebuild their credit history. Along with bank accounts, Nubank also offers credit cards, personal loans, investments, and financial education products.
Benefits for Brazilian Businesses
Nubank offers digital financial tools and credit facilities that are tailored specifically for small businesses and entrepreneurs. It provides a simplified loan and credit approval process thanks to data-driven underwriting. With over 107 million active Nubank accounts in Brazil alone, this is a significant customer base for every local business to tap into.
Keep It Local
For consumers and businesses in Germany, Canada, Sweden, and Brazil, these examples highlight how local fintechs are reshaping financial access and choice. The local benefits these digital offerings provide, from broader acceptance and fewer fees to interest-free payment options, are reasons worth considering.