What happens when you downgrade the account? Has anybody done it already?
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Well you will need to pay 1y sub anyway (20chf for Plus). Or just pay 10chf for the card for the free plan. I don’t know if it really is a smart move..
I’m also looking at closing my account. I have WIR now.
What I don’t like now with Neon: 0.35% FX fees (no big deal personnally), 10chf for a replacement card (2.5chf/y is still ok), but no free ATM withdrawal anymore, and that annoys me the most. And still Twint Prepay..
What I like, 3y warranty extension because of QoQa, and…that’s it.
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I’ve replied to their email asking how to avoid a new card. You need to let them know and they will add you to a “non renewable” list.
And you’ll have to ignore the notifications from the app.
You exactly saved 8chf assuming you pay 2chf for a month of neon plus…
Either you like the product and their pricing and I think it’s pretty cheap in absolute terms, is it worth or useful is up to the customer.
Netflix might survive subscription geohacking, that kind of hack will just kill neon for good, I think this is when mustachian mindset goes too far.
Neon isn’t a bank, they live from services, provided by their app. They have to make money somehow. Was that a smart move as a company, well…
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Client acquisition with a freemium product
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Shrink down the free part and increase premium optional services offer to generate income
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Make free not free anymore
All of this while still losing a lot of money, so it’s begging more than anything else, the only thing they’ve built up is a list of contacts (shall we call them customers if they generate exactly 0 turnover), and while at the same time “real” bank packages have appeared with equivalent pricing and services.
While being a great actor in banking disturbing the landscape with great success -clients acquisition- at an opportune time, I
don’t see a future for neon as it does not fit anywhere now and they’ve not proven to be economically viable as a company.
Things are moving fast and I wish they prove me wrong.
This renewal phase will be a milestone.
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They make money from the invest part and are now launching a 3a solution, maybe it is enough to compensate low prices on the banking side.
I was reading Neon’s TOC and only Global and Metal subscriptions have minimum 12 month subscription period. Plus doesn’t have this mentioned, so it should be cancellable monthly.
Articles 23, 26, 29 here:
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My card is about to expire and I got a similar e-mail. It’s not that you get a free replacement while on neon plus, you get a free replacement by upgrading (for that one time I guess). I’m on neon plus and the e-mail I got:
Alternatively, you can also get your new card for free by upgrading your neon plan until 09.11.25.
By switching to neon global or neon metal
Card replacements should be free while on global / metal, though…
cheers
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I wonder what the longterm financial decision behind this is. I would expect Neon to make money from card payments, as fees are charged for every transaction. And FX-Fees. Part of these fees must also remain with Neon. Or at least that’s what I thought until now.
Of course, customers who have an account but don’t use the card are a problem. But then you would at least have to offer a virtual card for Apple and Google Pay, which would eliminate the need for postal delivery, in the hope to remain or winning these customers back for your card.
Or to retain existing customers (like me) who only use Apple Pay anyway. Or no more free cards for customers who have used the card less than five times in a year. Or something similar.
Too bad that Neon doesn’t have a public annual report.
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They’re not a bank, so…
Maybe anyone here is a shareholder through their crowdfunding campaign?
Edit: I wrote them an email but I’m about to close the (unused) account.
Once seduced by their offer and disrupting mindset, I am skeptical about the business model, the revenue streams, and competition/landscape that has changed.
At first they suggested that not being a bank and lowering the costs, including paying themselves not like real bankers, but focusing on customer service and experience through an app that acts as a proxy of an open banking system provided by hypo lenzburg was appealing.
- They need a lot more revenue to survive:
a. Cross-selling (insurances and stuff) looks a bit like a bazaar
b. increasing fee structure, combined with premium abo to keep the advantages feels like continuous downgrade for the customer
c. There are some revenue generating cool features: duo, invest, but since they are a banking proxy, it’s difficult to make money by providing these low cost…
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Their communication is bad. Really bad. Every priced feature, fee increase, or even the referral program sounds like begging customers to help them get money. Getting paid from your customer is normal, but everything’s sound wrong starting with the fact they are called neon… FREE. There’s nothing wrong being a freemium product, but their path and story look sketchy, cause it’s free first, then not free anymore. Not like it’s free, and you can pay for more/better. Whatever fairness in the resulting offer, for existing customers it’s a poor experience. Oh, and don’t read the price in the app, they are wrong, says the email.
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Sketchyness. In addition to corporate communication, let’s add App sketchyness, bugs, instability, wrong writings in the account… there have been a lot of oops moments. And reviewing some content about the company, I came across the CEO interview on this very website. As biased as I may be, the cool-not-a-bank-startup stuff sounds definitely too casual for what’s needed in this industry. Bias comes from the resulting product and experience though.
I apologize for the company bashing and I would be glad to be proven wrong.
I answered their email saying I didn’t want a new card if it costs money. But I would take it for free.
They answered they’d give it to me for free.
But have really been using the account for some years and also have money in invest.
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I really wonder how is the journey for anyone who participated in their crowdfunding campaigns. Has neon interacted with you as shareholders/investors of a non-listed company? Have you had been involved in any decisions?
I don’t remember what neon promised in that regard when they were doing their tokens sales. Not looking for the sales pitch though, more the hands-on experience.
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Neon is launching a 3a product in November: Adieu Kantonalbank: Jetzt zur günstigen Neon 3a wechseln
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I also got annoyed by a 4-months-in-advance rushed card update thing with a sticky notification.
The 10CHF… I couldn’t care less to be honest.
But removing UBS TWINT is savage. How does this work for PostFinance that also issues MC Debit cards? And Raiffeisen (same)? Isn’t just UBS putting Neon on the bench now?
If there are any zero-cost alternatives (with good tracking of costs) I might be tempted to just walk out with our household account.
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I never used my neon card with prepaid Twint, as I have a cashback credit card for Swiss purchases anyway.
Is that legal btw?
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Why shouldn’t it be legal? Just check the terms before signing up / accepting new TOS
Is it good practice? I doubt so…
“upon expiring” it’s kind of new to me. I don’t remember having seen it.
But thanks.
Also Here I can’t see that.
Pity I don’t have the pdf I’ve downloaded when I created the account.
Me neither. Here e.g. the services and prices as of Jan. 2023
They specify “Replacement card” (20 CHF) only…
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This may be of interest to people who understand Swiss German:
A podcast episode with the CEO of Neon. The podcast is about how Neon came into life, fundraising, crowdrasing, how Neon makes money, etc.
Starting at 43:30, he explains how Neon makes money.
- Interchange for card payments: One part goes to Mastercard, the other to the bank. The bank’s share is passed on to Neon 1:1 by Hypothekarbank Lenzburg. Currently, this is Neon’s largest position on the revenue side. However, Neon uses this money to pay for the bank’s services, which cost a similar amount. Neon is working on that.
- Fees for international bank transfers.
- Trading: Fees for purchase/sale
- Advertising for partner offers: insurance, 3a etc.
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