Lydia goes back to basics with a new application dedicated to payments between friends

A novelty, but not a revolution: this is how we could summarize the new service deployed by Lydia on smartphones at the beginning of April. The Parisian company is making a comeback on payments between friends and online prize pools that have made it famous since 2011 with a brand new application available on download platforms. With more than eight million users claimed last year, Lydia is more established than ever in the online banking game. However, there is no question of letting yourself be overtaken by your competitors. The application launched this week should allow “Lydia to become Lydia again” by seeking to return to the initial recipe which contributed to the emergence of its strong notoriety.

The company, which became a unicorn two years ago, now offers two applications: “Lydia” and “Lydia Accounts”. The first, the new one, restores its letters of nobility to the famous “I’m making you a Lydia?” popularized by fintech by focusing on the original functionalities. Dedicated to reimbursement between friends, it is possible to request, send and collect money instantly and above all for free. Lydia thus seeks to bring some order to the galaxy of services it offers, “keeping only the best” notes Antoine Porte, co-founder of the company.

Don't panic for regulars. “Lydia Comptes”, an evolution of the original application, remains for everyday services. Intended for banking services (card, savings, investment, budget management, etc.), the latter also offers the services of the former in a logic of synergy.

For fintech, the deployment of “Lydia” comes at a key moment. This new application corresponds to a split between banking activities and online payment after listening to its customers. “It’s essential not to impose things on people if they are not ready or don’t want it,” confides Antoine Porte. The launch of “this spin-off” will make it possible to better meet the needs of its users, “which are different” he notes, by “simplifying the lives of the French”.

To continue to innovate and keep its promise of fun and simplified use, Lydia has also adopted a new internal organization to cope with this new stage. It therefore hopes to attract both its most loyal users and people interested in its services who have lost sight of its initial promise. It is also a way for fintech to develop its banking and social parts, which have been competing with neo-banks and players like LyfPay for several years.

With this return to basics, there is optimism on the side of the company which employs 250 employees. Antoine Porte sets two objectives. “On the banking side, we must support the French in the necessary digital transition with the closure of branches by offering a credible alternative. In terms of online payment, we want to reinnovate and accelerate. With the revolution of cashless between individuals (payments by applications Editor's note), we must provide fast, secure and practical solutions” he confides.

In December 2021, the French company had also raised $103 million in funds, which corresponds to four years of runway. Enough to approach the coming years with serenity and continue to innovate. “We are preparing numerous game-changing innovations for our customers,” recently declared Félix Lepoutre, vice-president in charge of design at Lydia Solutions. It remains to be seen whether this strategy will convince users.