This new feature by the German challenger bank allows customers to settle their payments through installments.
The flexible installment payment solution is getting very popular across all continents and Swedish BNPL giant Klarna has managed to become the most valuable FinTech company in Europe.
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With installments, customers are enabled to retroactively split past purchases and pay these back over time.
According to research that was provided by N26, 45% of respondents in Europe would consider splitting payments for a large purchase into installments.
However, only 16% would consider taking a loan, and only 12% paying with a credit card.

With installments, N26 aims to bring customers a new level of financial freedom, confidence and flexibility.
With the option to split monthly payments over 3 to 6 months, customers will also be able to select a plan that suits their needs, as the transparent pricing and interest rates will be displayed clearly in the app.
Gilles BianRosa, Chief Product Officer at N26: “We know that consumers tend to approach lending and credit products with care, especially because of concerns that these may encourage them to spend more than they can afford to, building up large debts that they may struggle to pay off.”
“We see N26 Installments as a responsible alternative to traditional loans or buy-now-pay-later products as it focuses on past purchases already paid for in full. N26 Installments helps customers go back in time and split the payment retrospectively to unlock financial flexibility immediately as it is needed,” he added.
“Our recent research shows a growing sense of financial optimism among consumers, with many customers planning to make purchases in the coming months. 2 in 5 Germans plan to spend money on clothes and fashion and 22% of them on new tech items such as TV and gaming consoles in the next 3 months,” commented Georg Hauer, General Manager of DACH and Northern Europe at N26.
“As Europeans/Germans loosen their purse strings, we believe that N26 Installments will allow our customers to spend confidently, yet responsibly, with a new way to manage their money with N26 with freedom and flexibility,” said Hauer.