You have surely already heard of Lydia, a mobile payment application that allows you to “forget about the cash”, to reimburse yourself with friends, to pay using your Lydia card or even to pay via your smartphone. Created in 2011, the application has been running since 2013. Today, the application has more than 4 million users mainly in France and the development is now international.

Origin and activities of Lydia?

“Lydia” is the name of the kingdom where the first coin was minted in the 7th century BC. Instead of barter, the Lydians sought an efficient and secure way to trade, hence the creation of money.

The startup allows you to get back to the basics of cash: when you ask for or give someone money; bank details are not required; you instantly know your balance. Lydia has made it possible to provide control, security and immediacy, but with digital and mobile means. Lydia is a company that designs mobile payment solutions created in 2011. It is the French leader and currently has a little over 4 million users (total number of people using at least one of the services offered by Lydia ) . 70% of the app’s users are “millennials” (18-30 years old).

Lydia is basically a universal wallet that allows you to reimburse yourself between friends while avoiding all the complexity of transfers. The application brought fluidity, immediacy and security. Initially, the application was also designed to pay professionals who accepted this payment system or pay e-merchants online.

The digital evolution of our society has developed expectations of real time and control: how can we explain that it is still necessary to wait a few days to receive a transfer in a bank?

Digital evolution and comparison with retail banking

Why is there no “Lydia-type solution” in banks yet?

The context of banks today: there are resources, competent people who are very familiar with the digital age and finally significant financial means. But there are constraints:

  • Old computer systems that were not designed for real-time operations and that require years of work to transform them,
  • The regulations which are constantly evolving for each service offered.
  • Bankers combine many professions and come to aggregate regulatory systems.
  • The organisation and structure of major banks with the weight of social and union procedures.