YAPEAL originally set out to become a neobank. Today, the fintech is thriving in embedded finance - but Switzerland alone is too small a market in the medium term.
Swiss fintech Yapeal has repositioned itself. Instead of continuing to focus on the highly competitive retail banking market, the company completed a strategic shift over the past three years and has since consistently focused on B2B and B2B2X models in the field of embedded finance. The strategic realignment is paying off: growth is accelerating, investors are confident, and breakeven is coming into view.
Fintech License Number One
Yapeal is one of only a few providers in Switzerland still holding a fintech license; finews previously reported on this. Currently, there are four such licenses — and Yapeal was the first company to receive one. The license allows the acceptance of client funds and the processing of payment transactions; lending activities are excluded. Client funds are held in segregated accounts.
From a B2C Approach to a Platform Strategy
Yapeal originally launched as a digital banking app for retail customers. While the model attracted users, it quickly reached its limits in the Swiss market. International heavyweights such as Revolut and N26, along with numerous domestic neobanks backed by financially and commercially strong parent companies, made it difficult for an independent provider to achieve scale.
The turning point came with the decision to make Yapeal’s technology available to third parties. An early reference project is the collaboration with Vontobel: the entire digital onboarding and KYC process of the digital bank Volt runs on Yapeal’s platform.
“By 2023 at the latest, it became clear that the company’s strengths lay less in the end-customer business and more in its role as an infrastructure and compliance partner,” CEO Michael Eidel told finews.
Three Clusters — Plus a Fourth Pillar
Today, Yapeal focuses on three core areas:
Cards as a Service for banks:
Private banks in particular often outsource their card business to large providers. Yapeal enables them to once again offer tailored card solutions for wealthy clients using its own license and technology — including customized features and benefits.
Embedded finance for digital platforms:
Account and card solutions are integrated directly into digital business models. One example is Swibeco, which manages employee benefits for large Swiss companies. Yapeal provides the integrated card and account infrastructure in the background.
Market entry for foreign fintechs:
An increasing number of European fintechs want to expand into Switzerland but face hurdles related to regulation, payment infrastructure, or local integration. Yapeal offers “compliance and platform as a service” — including connectivity to Swiss systems such as SIC or local payment standards like eBill.
These activities are complemented by a fourth pillar: digital business accounts for Swiss SMEs. Dozens of new corporate customers are onboarded fully digitally each month. They can issue expense cards for employees and directly link their accounting systems with payment and card processes.
Breakeven Targeted Within Three Years at the Latest
The strategic shift is delivering results. In its core business, revenue is currently growing by 30 to 40 percent per quarter. Investors are supporting the chosen path through to breakeven, which is expected within two to three years.
However, Yapeal’s growth ambitions do not end there. According to Eidel:
“In the long term, the Swiss market alone is not sufficient. A digital business model like ours depends on scaling our services.”
Yapeal is therefore preparing for expansion into Europe, likely via an e-money institution license, for example in Liechtenstein. The goal is to scale the digital business model beyond Switzerland in the medium term.
Stablecoins as an Option, Not an End in Themselves
In light of the ongoing revision of the Financial Institutions Act, Yapeal is also monitoring new regulatory opportunities, including in the area of stablecoins. The company already operates at the intersection of fiat payment systems, digital assets, and tokenized solutions. However, issuing its own stablecoin is not a short-term goal, CEO Eidel emphasizes. What matters is whether such solutions solve real customer problems.
Criticism of Regulation
While Yapeal is satisfied with its own positioning, the company takes a more critical view of Switzerland as a fintech hub. The number of licensed providers is small, and approval processes are considered lengthy and lacking transparency. In an international comparison, management sees room for improvement — especially for a country that prides itself on being an innovation hub.
For Yapeal itself, however, the guiding principle remains clear for now: maintain focus, deliver results, and build trust. Only then will new business areas follow.