Lydia Enhances Open Banking Features with Tink Integration

French fintech leader Lydia has announced a strategic partnership with financial API platform Tink to strengthen its open banking capabilities. This collaboration marks a significant step in Lydia’s evolution from a peer-to-peer payment app to a comprehensive financial super app serving 4 million European users.

Expanding Financial Services Through Open Banking

Lydia’s vision focuses on becoming the central hub for users’ financial lives by offering:

• Bank account aggregation
• Seamless money transfers
• Comprehensive financial management tools

Currently, French users connect their bank accounts via Budget Insight’s Budgea API. The new partnership will introduce Tink’s technology alongside existing solutions.

Phased Implementation Strategy

Lydia will implement a smart, user-centric approach:

• Gradual rollout of Tink’s API
• Dynamic selection of optimal service per bank connection
• Continued support for Budget Insight where preferred

“We’re committed to using the best available service for each user,” explained Cyril Chiche, Lydia’s CEO and co-founder.

Key Open Banking Features

1. Account Aggregation

• View connected bank accounts in one dashboard
• Access real-time transaction history
• Gain complete financial visibility

2. Payment Initiation

• Initiate SEPA transfers directly from the app
• Move funds between Lydia wallet and bank accounts
• Transfer money across multiple connected accounts

Why Tink? The Technical Advantage

Tink’s API solution offers:

• Unified interface for diverse European banking systems
• Compliance with DSP2 regulations
• Support for 15+ French financial institutions including major banks and neobanks
• Coverage across multiple European markets

“This partnership ensures stable, scalable operations as we expand across Europe,” Chiche noted, emphasizing the importance of consistent service quality.

The Future of Payments: Cards vs. Open Banking

While Lydia currently relies on card payments for reliability, the company sees potential in open banking:

Current Advantages of Card Payments:

• Proven stability
• Widespread acceptance
• Chargeback protections
• Innovative card-to-card transfer features

Emerging Open Banking Opportunities:

• Potential cost savings by bypassing card fees
• Direct bank account access
• Enhanced competition under DSP2 regulations

“We’re at the beginning of a transformation that will take years to mature,” Chiche observed, predicting healthy competition between traditional and open banking solutions.

Growth and Market Position

Despite pandemic challenges, Lydia has demonstrated remarkable resilience:

• Processes €250 million monthly transactions
• Adds 5,000 new users daily
• Achieved record transaction volumes post-lockdown

This strategic partnership positions Lydia to strengthen its European footprint while delivering enhanced financial services through cutting-edge open banking technology.

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