Reader Question: Are Americans really banned from using France's Lydia app?
For several years, Americans have reported being banned from the French mobile payment application 'Lydia'. Here's why.
In recent years, Americans living in France have noticed their accounts with the French mobile payment app Lydia being shut down.
Lydia allows users to send and receive money and also allows users to purchase items and do online shopping - it's similar to the US-based Venmo or Switzerland's Twint.
Lydia also offers a bank account feature, which provides a France-based IBAN (International Bank Account Number).
But when it comes to American users (as well as green-card holders), the app has a zero tolerance policy.
READ MORE: What are the biggest challenges for Americans in France?
As for who can use Lydia, the terms of agreement are clear: "He/she is not, or is not assimilated as, a "US Person", i.e. he/she is not a US taxpayer as defined by the US tax authorities and the Foreign Account Tax Compliance Act (FATCA) of 18 March 2010."
The user agreement goes on to detail who is considered a "US person", specifying that this includes "citizens of the United States or any person who is deemed to be a citizen of the United States if he or she holds a US passport or was born in the United States, even if such place of birth appears on a passport of another country, provided that renunciation of US citizenship cannot be shown."
This rule applies "even if the person also holds another nationality or has his or her residence in another country."
The ban also covers people who live in the US - even if they're not American - such as green card holders.
Lydia does not explicitly state the reason for its ban on Americans, but it's likely to be the piece of US tax legislation known as FATCA, which causes multiple problems for Americans living abroad including difficulty in opening a bank account.
Some Americans who had previously been able to use Lydia have recently received emails telling them their accounts are being closed, which reference FATCA.
What can Americans use besides Lydia?
Paypal is available internationally, and it functions similarly.
Americans can also consider sending direct virements or bank transfers.
If a French person asks you to send them your RIB (bank account identity statement), it might feel like you are being scammed, but fear not - giving someone this information does not allow them to take money from your account.
It simply allows them to pay you, and vice versa when you add someone else as a bénéficiare (an authorised person to transfer money to).
READ MORE: French Expression of the Day: File-moi ton RIB
Foreigners living in France also frequently use internet bank accounts such as Wise or Revolut, which allow for easy money transfers.
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In recent years, Americans living in France have noticed their accounts with the French mobile payment app Lydia being shut down.
Lydia allows users to send and receive money and also allows users to purchase items and do online shopping - it's similar to the US-based Venmo or Switzerland's Twint.
Lydia also offers a bank account feature, which provides a France-based IBAN (International Bank Account Number).
But when it comes to American users (as well as green-card holders), the app has a zero tolerance policy.
READ MORE: What are the biggest challenges for Americans in France?
As for who can use Lydia, the terms of agreement are clear: "He/she is not, or is not assimilated as, a "US Person", i.e. he/she is not a US taxpayer as defined by the US tax authorities and the Foreign Account Tax Compliance Act (FATCA) of 18 March 2010."
The user agreement goes on to detail who is considered a "US person", specifying that this includes "citizens of the United States or any person who is deemed to be a citizen of the United States if he or she holds a US passport or was born in the United States, even if such place of birth appears on a passport of another country, provided that renunciation of US citizenship cannot be shown."
This rule applies "even if the person also holds another nationality or has his or her residence in another country."
The ban also covers people who live in the US - even if they're not American - such as green card holders.
Lydia does not explicitly state the reason for its ban on Americans, but it's likely to be the piece of US tax legislation known as FATCA, which causes multiple problems for Americans living abroad including difficulty in opening a bank account.
Some Americans who had previously been able to use Lydia have recently received emails telling them their accounts are being closed, which reference FATCA.
What can Americans use besides Lydia?
Paypal is available internationally, and it functions similarly.
Americans can also consider sending direct virements or bank transfers.
If a French person asks you to send them your RIB (bank account identity statement), it might feel like you are being scammed, but fear not - giving someone this information does not allow them to take money from your account.
It simply allows them to pay you, and vice versa when you add someone else as a bénéficiare (an authorised person to transfer money to).
READ MORE: French Expression of the Day: File-moi ton RIB
Foreigners living in France also frequently use internet bank accounts such as Wise or Revolut, which allow for easy money transfers.
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