ING and Euro 6000 are currently negotiating the new rates that the payment system of the old savings banks will apply to the orange bank after the resolution adopted by the National Markets and Competition Commission (CNMC) communicated on November 19.
At the moment, and according to financial sources, the objective is that the new commissions for withdrawing cash from the more than 8,700 ATMs that this network has, belonging to Abanca, Ibercaja, Kutxabank, CaixaBank, Unicaja, Caja de Ingenieros, Evo Banco or Bankinter apply from January, although everything depends on the closing of these negotiations.
The Competition resolution also allows neobanks, such as N26, Revolut, Rebellion or Bnext, among others, or other banks, especially small ones, also to negotiate with this wide network of ATMs distributed throughout Spain, and in which Banco Sabadell could also be included, which has maintained a bilateral agreement with all banks in the Euro 6000 network since 2015. Sources of these fintech companies, in fact, have confirmed to this newspaper their intention to establish negotiations once the new ones are made public. rates applicable to ING.
For now, the orange bank hopes to considerably lower the current rates charged by entities of Euro 6000 in order to pass this cut on to its clients. The idea is that its more than 4.2 million customers in Spain can withdraw cash from these ATMs for free from a maximum of 50 euros, although it could be even from less money, depending on the final agreement.
ING had already had an agreement with Bankia since 2017, which it will maintain until October 2022, for its customers to withdraw free cash from 50 euros, and which now extends to CaixaBank ATMs with the Bankia logo, until that date, to later negotiate a new agreement.
In this way, both ING and the Competition decision make it easier for neobanks, which lack offices and ATMs, to reach agreements with Euro 6000 to lower their invoice for their customers to withdraw money from their terminals, and that in turn revert to these clients.
Most of these neobanks offer free cash withdrawals up to a certain number of operations and the withdrawal of money, but always depending on the flat monthly or annual fee that the user subscribes.
Between N26, Revolut, Rebellion or Bnext they add more than 2.5 million clients, which may double by the end of 2022, if the plans of these fintech companies are taken into account. Rebellion, for example, intends to reach two million customers in two years. ING customers can also withdraw money without commissions from any ATM in Spain as long as it exceeds 200 euros in each operation.
In November, the CNMC urged Euro 6000 to launch a new commission offer to ING and, in addition, it will formalize a reciprocal agreement with the orange bank within 15 business days of the entity of Dutch origin formally accepting said offer. And that is where the negotiations are now.
The regulatory body thus considers closed, but with obligations, its investigation of an alleged anti-competitive practice consisting of the systematic denial, both expressly and tacitly, to ING, of access to the ATM network of Euro 6000 entities under the same conditions than those agreed by its members and those applied to other entities with which it has reached agreements. ING so far pays around 2 euros for each customer operation, depending on the ownership of each ATM.
Euro 6000 now has, as agreed with Competence, three ways to reach agreements with third parties, always depending on the number of ATMs and the extraction operations carried out, ranging from 0.5 euros per operation to 2, 50 euros. In the case of ING, the maximum rate to apply would now be 1.20 euros, as it has just over 160 ATMs, which it would contribute to the alliance. Although this figure would have to deduct 0.05 euros from one million operations.
ING currently has alliances so that its clients can withdraw cash at no cost, in addition to their ATMs, with Euronet, Cashzone, Banca March and Euro Automatic Cash. In those of the old Bankia this service is also free from 50 euros and in the rest, from 200.
ING official sources have declared to Five days: “We are very satisfied with the resolution of the CNMC and delighted to be able to start this collaboration with Euro 6000. We believe that this is good news for the market as a whole, since it opens the door for other entities to reach similar agreements, which that results in a clear benefit for users of banking services. ING allows us to be where our clients need us and to continue working so that they have the best experience. We are currently analyzing the proposal we have received for Euro 6000. We hope to sign the agreement soon ”.
The neobank N26 explains that its clients have three, five or eight monthly cash withdrawals at free ATMs, depending on the account they have, although each additional withdrawal has a commission of 2 euros.
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