Pixpay launches a coach to help young people choose their bank

Pixpay Coach is the new service developed by Pixpay, the bank for teenagers, which was acquired by GoHenry last July. The new service is designed to help young adults find the right bank for them.

FACTS

• Pixpay is now offering all its users over 18 years of age tailor-made support in choosing their bank. Called Pixpay Coach, the new service has three key features:

• Simplicity: Pixpay has established a pre-selection of hand-picked partners from all types of financial institutions: traditional banks, online banks and neo-banks.

• Personalisation: Pixpay provides its users with a personalised search engine allowing them to identify the bank offers that correspond to their short, medium or long-term projects: student loan, stay abroad, departure from home, dedicated advisor...

• Attractiveness: Whatever their choice, users will benefit from a welcome bonus and privileged packages with their new bank.

• Pixpay already has 4 banking partners for its new offer: Société Générale, Orange Bank, La Banque Postale and Revolut.

CHALLENGES

• Collaborate rather than compete: The neobank model for teenagers requires a large customer base since it is based mainly on subscriptions and a very low interchange fee. Another difficulty faced by this type of neobank is customer retention. Unlike some players who have chosen to broaden their offer, such as Kard, Pixpay has chosen a more pragmatic and lucrative path.

• Opening up a new business: As a business provider, Pixpay opens up a new additional remuneration model to its offer, currently based exclusively on the income generated by monthly subscriptions.

• Taking the measure of change : The arrival of online banks and neobanks has fundamentally changed the banking landscape. The offers are more specialised and the specific needs of young customers can legitimise their choice of an institution that suits them. While three out of four young adults opt for their parents' bank out of convenience or reflex, 60% want to review their choice barely a year later.

MARKET PERSPECTIVE

• Launched in 2019 in France and 2021 in Spain, Pixpay plans to expand into Italy. With Gohenry's acquisition covering the UK and US, the new entity is beginning to boast a significant customer base of 2.2 million members - including parents.

• In the United States, a major player in peer-to-peer payments, Cash-app, Square's famous application, opened its offer last November more specifically to young people, with a parental control feature.

• In France, the Montpellier-based start-up Inzpocket offers a solution to support and secure access to e-commerce for children. This is a topical issue at a time when questions about parental control and the online consent of children under 15 are becoming increasingly important.