Lydia is likely one of the hottest peer-to-peer cost apps in Europe, with 1.5 million customers. Give it some thought as a kind of Venmo or Sq. Money for Europe. Extra lately, the corporate began providing extra choices to handle your cash with a premium subscription and extra options.
Whereas Lydia doesn’t wish to substitute your financial institution and insurance coverage firm, the corporate is providing an insurance coverage product for the primary time. Lydia is partnering with its investor CNP Assurances — having an insurance coverage firm as an investor has a number of benefits.
So right here’s what you get. You’re immediately lined towards cracked screens, liquid harm and unintended harm. There’s no extra, however you’re restricted to at least one declare per yr. Telephones now price a small fortune, however you’re restricted to €500 ($570) per declare.
Optionally, you may subscribe to a greater insurance coverage product for €9.99 monthly ($11.39). Along with telephone insurance coverage, your laptop computer, pill, Nintendo Swap, Kindle, digital camera and different electronics are lined. You can also make two claims per yr and you will get again as much as €500 on your telephone and €1,800 for different units. Extra importantly, you’re additionally lined towards theft.
Many telephone carriers promote cell phone insurance coverage. However they often price greater than that. Most often, you additionally must subscribe for no less than one yr. In Lydia’s case, you may cancel your subscription everytime you need within the app.
If that product sounds acquainted, it’s as a result of Revolut affords a similar feature (with some drawbacks). You possibly can subscribe to cell phone insurance coverage from Revolut’s cellular app.
Pricing isn’t as easy with Revolut, as Premium subscribers get a reduction. For an iPhone X, the insurance coverage product prices as a lot as €9.58 monthly ($10.92) with out a Revolut Premium account, or as little as €6.67 monthly ($7.60) for those who pay upfront and you’ve got a Revolut Premium account.
It’s a 12-month contract with a €125 extra and no theft safety. You additionally want to start out insuring your telephone rapidly after shopping for (inside six months), in any other case you aren’t lined. Revolut works with Allianz and Simplesurance for this insurance coverage product.
Lydia could have borrowed the concept from Revolut, however I’m unsure why you’d select Revolut’s insurance coverage product over Lydia’s product.
It’s fascinating to see that fintech corporations are creating various income streams with insurance coverage merchandise. Subscribing to an insurance coverage product is fast and painless, as they already handle your cash and have your card on file.