The German digital bank N26 is launching its own complete mobile service.

British competitor Revolut announced just a week ago that it would also launch its own mobile service later this year. However, the British company has not yet been able to provide an exact launch date or a specific technical partner. N26 is cooperating with Vodafone GB00BH4HKS39 for its mobile service.

Neobanks like N26 and Revolut are opening up new revenue streams by entering the mobile phone business. They generally offer their core services without monthly fees. They generate revenue partly through card and transaction fees. Whenever customers pay with their debit card, the bank receives so-called interchange fees from the merchant.

Both N26 and Revolut also offer paid premium accounts. These generate monthly or annual subscription income and offer additional services such as insurance, higher withdrawal limits, or special card designs.