LONDON – German app-only bank N26 has reached 500,000 customers, the startup announced on Monday.

The Berlin-based firm said 200,000 new customers have signed up in the last five months and 1,500 people are signing up each day. Transactions have also jumped from €3 billion (£2.7 billion) in March to €5 billion (£4.5 billion).

Valentin Stalf, the founder and CEO of N26, said: “The key driver for our growth is our customers who recommend our product.

“This exponential growth validates our goal to become the leading mobile bank for digital customers throughout Europe in the coming years.”

Founded in 2013 and launched in 2015, N26 is a so-called “neobank” – a branchless bank that offers all its services through a smartphone app only. The company operates across 17 countries in Europe, including Germany, France, Italy and Spain.

N26 is one of a number of app-only bank or bank-like services that have sprung up across Europe in the last few years. UK rivals include Monzo and Revolut.

N26 has a significant war chest to take on competitors. The 290-person business has raised over $55 million (£42.7 million), most recently raising $40 million (£31 million) from investors including Hong Kong billionaire Li Ka-Shing last June. N26 has said it plans to launch in Britain later this year.