Leaked memo reveals that $800 million investment startup eToro is launching a debit card to take on Europe’s challenger banks
- Social investment platform eToro is launching a debit card next year as London’s fintech scene continues to hot up.
- Images and emails seen by Business Insider indicate that eToro, valued at around $800 million, is moving into a crowded part of the market.
- London-based eToro allows users to invest in a number of asset classes and will let users withdraw and pay for products and services from their eToro wallet.
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London-based investment platform eToro is planning to launch a debit card in 2020 to expand its services.
Founded in 2007, eToro allows users to trade a variety of assets including currencies, stocks, commodities, and cryptocurrencies and also has a social function.
Stock-trading platforms have been rising in popularity in the UK and Europe with companies like Freetrade and challenger bank Revolut offering similar services. Meanwhile US trading app Robinhood is also entering the UK market.
Images and emails seen by Business Insider indicate that eToro is planning to launch a debit card in the middle of Q2 2020 to extend its products and services.
eToro declined to comment.
eToro has raised $222.7 million to date at a valuation of around $800 million, according to Reuters.
The company claims to have around 12 million users worldwide who can invest in more than 1,500 assets. Part of eToro’s appeal is its social platform in which popular investors share their tips and stock picks. Users can also set up programs to automatically invest when users they follow do so. It also launched in the US earlier this year.
Investors in eToro’s latest round, a Series E funding in 2018, included China Minsheng Financial, with SBI Group and Korea Investment Partners, among others. Last month, the company acquired cryptocurrency portfolio app Delta and will controversially offer access to Saudi Aramco’s IPO via contracts for difference (CfD).
Emails seen by Business Insider were directed to the company’s head of finance in the UK, Kreeson Thathiah, indicating that the product will launch in London. eToro also has offices in Cyprus and Israel.
While eToro wouldn’t comment on specifics, users should be able to spend their eToro earnings on the card.
Early images indicate that users could set up recurring payments, such as subscription services, through the card.
It’s a crowded field for issuers at the moment with Monzo, Revolut, and Starling Bank offering a bevy of services via their apps and cards. It’s clearly a smart way to get more revenue from customers (every time a card is swiped, that fintech company earns a portion) through interchange. And younger consumers, particularly 18-34 year olds, are more likely to use a debit card from a tech company they already know well, per CB Insights.
eToro will be hoping it can leverage its user base to provide a new stream of income while expanding and improving its service.