Bunq is the first challenger bank that joined the TARGET payment network, a system developed by the European Central Bank.
bunq has already had instant payments as an option through the EPC Instant Payment System (RT1) that includes participating European banks.
With joining TIPS every payment sent by bunq user to any European bank that participates will arrive instantly. This feature is designed to save time and let users manage their money hassle-free.
Ali Niknam, CEO and founder of bunq, was an avid programmer since childhood and studied computer science at the Delft University of Technology. He has launched the web-hosting startup TransIP in 2003 when he was only 21 years old.
With his money from TransIP Niknam decided to launch bunq. Since 2012 processed over €433m in user deposits.
Ali Niknam says: “We’re proud to be the first challenger bank to enable instant payments across Europe. Simply experience this amazing time saver with your next payment!”
Dutch challenger bunq is also offering mortgages since July as a part of its new partnership with a third party broker.
This option enables bunq’s users to remove boundaries associated with obtaining a mortgage, thus encouraging people to become homeowners. The challenger bank is diverting around €100m of its user’s deposits into a new real estate fund.
“Our users indicated that they wanted to help others obtain a home. We listened to this and started investing in mortgages,” Ali Niknam explained the collaboration.