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Vybe, a newcomer focused on young people

When we see so many companies arriving in a sector, it is easy to understand that there is a financial interest for them. The banking sector has seen successive companies for about 5 years with different models. At the start of the year, let's take a look at Vybe





An electronic money establishment created by young people
Vybe is a simplified joint-stock company, registered in August 2019 with a share capital of € 200 (two hundred euros)

There is the “President” Brice GARNIER born in 1995 as well as 2 “General Manager” who are Canelle CHOKRON born in 1999 and Vincent JOUANNE born in 1995.

At the age of 24, Brice GARNIER launched Vybe after a first launch of the company Involve Paris. Similar journey for Vincent JOUANNE who founded the company Sharkr. The two companies focused on customer acquisition. They thus sold services to third parties on how to obtain from the customer with the processing of the data.

English accreditation
The electronic money license is based on the approval of PayrNet Limited, their English partner. Since the end of November 2019, Vybe has thus been authorized to use the services of PayrNet (Railsbank). Vybe can thus distribute the products of this partner (account and card).

The FCA in England is more flexible than the ACPR in France. This explains why many Fintechs prefer to start with a license from the FCA rather than the ACPR. It must be recognized that the ACPR is very rigorous and does not hesitate to ask for details. The security of the financial system is non-negotiable for the ACPR, which checks that the model is reliable and viable.

Even with a hard BREXIT without agreement, Fintech like Revolut do not have accreditation with the ACPR. These fintechs therefore went to authorities of the same level as the FCA. It must be said that in France ACPR and AMF are regulatory authorities that give managers a cold sweat because, as we indicated, protecting customers is a priority.

When you see establishments like Moneway, Max, Yeeld, Nickel… getting their license from the ACPR, you know that they have met the requirements of one of the toughest authorities in Europe with their Dutch counterpart.

The Vybe offer
A black card
For the moment, if we refer to the T & Cs and FAQ information, the Vybe offer will consist of a so-called "black card" backed by a card account. The “black” finish of the card is therefore highlighted in the CGU as a marketing element.

The age of the Vybe team certainly has something to do with this choice. They easily understood that the statutory side is something vital for their generation. It must be recognized that to acquire customer and data, it is much more seller than the design of the Max card (we say that, we say nothing)

The Mastercard offered by Vybe is therefore based on a “BIN Sponso” program from PayrNet. Like Kard, Max or Revolut, this program is completely closed to offline tolerance for operations (shortened to "offline" by many people).

Vybe, a free offer
In terms of fees and costs, the T & Cs suggest that everything will be free, even payment and withdrawal operations in foreign currencies.

There is also information that specifies that SEPA direct debits will be available, unlike Kard at the moment.

There would be no charges when unpaid on these operations, the T & Cs only specify that in the event of repeated incidents (unpaid), the account may be closed.

On the sponsorship side, no limit according to the T & Cs, with a repayment of € 2 for the sponsor and as much for the sponsored child.

An English IBAN
Transfers entering on an individual IBAN will be available, as well as outgoing transfers to third parties.

The IBAN will be visibly English with BIC PAYRGB21XXX. This BIC is not compatible with instant SEPA transfers, Consequently, only transfers between 2 Vybe customers can be made in "instant". You will therefore not be able to make or receive instant transfers between Vybe and a compatible bank.

The offer is accessible from 12 years old, it will of course require registration with the assistance of the legal representative.

The absence of xPay
PayrNet is not in Mastercard or Visa partners regarding Wallets (Apple Pay, Samsung Pay, Google Pay Garmin Pay ...), so there will be no possibility of using in the Vybe card in your phone for example.

Data, Vybe's business model
On the site, there is no shortage of indications that user data will be used for marketing purposes.

It is especially in the CGU that the information is very clear. By indicating "In order to offer increasingly personalized offers that are compatible with the interests of its Users, Vybe performs analyzes of its Users' data", the company clearly announces the rules of the game.

It is also specified there “to identify their tastes and centers of interests and to initiate targeted marketing operations and to negotiate advantages with its partners in the interest of the Users, which the latter recognize and expressly accept, subject to their rights in personal data ”.

Give give data !!
The economic model is therefore very simple: obtain data, make profiles, and offer campaigns to brands. For example, offer a Fastfood chain to send customers for payment for this campaign, and to motivate users to go there, offer a discount.

In the idea, the data is pseudonymized / anonymized, that's in theory. Because in practice, it suffices to crosscheck between 2 and 3 anonymous profiles in order to identify the person. This is the job of some companies that take data from everywhere. They can thus trace a person via several normally anonymous data.

Once the economic model is understood, one cannot help making the link with the first companies of Brice GARNIER and Vincent JOUANNE. Companies whose marketing activity was precisely customer recruitment and loyalty.

The banking sector is full of data. This is often an area considered a gold mine for advertisers. Qualified profiles, traced data, feedback that can be monitored / tracked ... Companies make it their business model.

Banks have always refused to cross this line in red, and not only in France, but also in many countries.

On the territory, it was Max who in 2017 went beyond a moral limit imposed by the banks. Max has launched into free data, a data from the aggregation of accounts, but also with the calling product Apple Pay, Google Pay, Samsung Pay services ... enough to attract profiles when banks do are not compatible. To this is added free payments and withdrawals, even in currency.

Until 2019, Max remained relatively discreet about this practice, and preferred to speak of a business provider while ignoring the fact that all the data captured by Max was processed in order to target the customer profile. It was Arkea’s CEO, Ronan Le Moal, who brought down the taboo and started to communicate transparently about Max’s activities.

From that moment, Max and his DG Didier Ardouin have been more transparent on practices. They no longer hide that the model is to store data, make profiles which are then offered to advertisers for campaigns.

They took the example of tracking your fuel expenses in order to extrapolate the type of vehicle / distance traveled and thus compare the cost of your insurance with what their partner could offer you. Same situation with the payment of rents, where they study upstream the possibility of offering you a mortgage by a partner in order to give you access to property.

Conclusion
Vybe is a new player who is launching, and targets relatively young profiles 12 - 25 years old with an economic model based on the fact that against data exploitation, the service is free.

There is nothing innovative in comparison to services like Nickel Account, open to minors, or services like Revolut, for adults.

The offer is even less interesting than a solution like Max, and even if just like Vybe, Max exploits data, they do it with information that you can control ... for example without aggregating accounts in Max.

Max also adds excellent insurance, not to mention a concierge service that you can request for basic requests, such as reserving a table in a restaurant.

For the moment, no player stands out in the miners market. If one day Revolut or N26 enters this segment, it is certain that they will quickly become the leader. Their names are starting to resonate with people who are not on social media. Many young people have told their parents about these products.

Whether N26 or Revolut, they have enjoyed a certain notoriety since 2015. Therefore, if they release a product, they take back control of the competitors. And we are convinced that this will be the case, if one day they open the segment to minors.

There is nothing new, Vybe remains a reseller who will offer licensed electronic money services through an API offered by PayrNet. It is better to wait for the majority and subscribe to a solution like Max, Revolut or N26 if you want free, and bunq or Nickel Account for paid services.

Ideally, if you have no aversion to banks and you want a more complete range of products such as savings, the stock market, credit… Boursorama like Fortuneo are widely in the lead with their Ultim and Fosfo offers accessible without income conditions.

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