London-based online broker Trading 212 has teamed up with Paynetics, a regulated e-money services provider, to offer real-time payment and banking services to customers.
The collaboration will integrate multi-currency accounts and card payment options within Trading 212’s trading services.
Through this partnership, Trading 212 customers will find it easier to manage their everyday expenses without the hassle of withdrawing funds. Paynetics contributes its expertise in embedded finance technology to offer a card product to its clients.
According to a joint press release, this new venture with Paynetics further broadens the scope of services available to Trading 212 customers, offering them a more integrated financial experience within a single application.
With a portfolio boasting more than 115 embedded finance clients, Paynetics enables customers to craft, develop, and manage financial products.
Ivo Gueorguiev, Co-Founder at Paynetics UK, said: “We’re delighted to be partnering with Trading 212. Their innovative technology condenses a complex world into a simple and accessible app available in people’s pockets. By using Paynetics’ infrastructure, Trading 212 will be able to continue empowering investors with the ability to scale their trading globally. We look forward to working with Trading 212 as it disrupts the stock market.”
Kaloyan Yanchev, Head of Payments at Trading 212, added: “We’re extremely excited to be working with Paynetics – a leader in embedded finance. Democratising savings and investments is something that we’re very passionate about and this partnership allows us to increase the capabilities of our commission-free platform for our customers.”
Trading 212 was the first retail UK broker to offer commission-free trading and its core product portfolio consists of stocks, ETFs, FX, and derivatives products.
In terms of CFD products, the company operated from January 2021 to May 2021 on a spread revenue model, profiting from the difference between the prices offered to clients and those on which hedging trades were conducted via a back-to-back hedging agreement with a group affiliate. From May 2021 onwards, T212 opted to end this arrangement to manage its own risk based on defined parameters for each product and asset class, hedging exposures outside of these with third parties.
For the stock trading business, the company operates a zero-commission model where clients do not pay commission for trading nor custody fees for the assets held. Instead, T212 earns fees from clients when they trade in a currency different to that in which their cash was deposited, and through a collateralised stock lending program.
