Revolut

Revolut is a global financial technology (fintech) company offering digital banking services, founded in 2015 in the United Kingdom. Headquartered in London, it operates in over 35 countries, primarily in Europe, Asia, Australia, and North America. The platform is known for its mobile application, which provides a wide range of financial services, including multi-currency accounts, payments, investments, and budgeting tools. As of 2024, Revolut was valued at $45 billion, making it the most valuable private technology company in Europe. By 2025, Revolut has over 60 million users worldwide.

History

Revolut was founded by Nikolay Storonsky and Vlad Yatsenko in July 2015 with the goal of offering a cost-effective alternative to traditional banks, particularly for international payments and currency exchange. In 2018, the company obtained a European banking license through the Bank of Lithuania, enabling it to provide full banking services in the European Economic Area (EEA). In 2021, Revolut began operating as Revolut Bank UAB in several EEA countries, ensuring client deposits are protected under European regulations up to €100,000. The company has expanded to the United States, Japan, Australia, and other markets, continuously adding new features such as cryptocurrency trading, stock investments, commodities, and mobile plans.

Services

Revolut offers a comprehensive suite of financial services through its mobile app, available on iOS and Android. Key services include:

Multi-Currency Accounts

• Users can hold and exchange up to 36 currencies, including EUR, USD, GBP, and others.
• Currency exchange is conducted at interbank rates with minimal fees (free up to €1,000/month for the Standard plan, 1% fee for exceeding the limit, and a 1% surcharge on weekends).
• Support for payments in over 150 currencies and transfers to 160 countries.

Payment Cards

• Debit cards (Visa or Mastercard, depending on the region) and virtual cards for online payments.
• Support for Apple Pay and Google Pay for contactless payments.
• Ability to lock/unlock cards, change PINs, or create single-use virtual cards for enhanced security.

ATM Withdrawals

• Free withdrawals up to €200 (or 5 withdrawals) per month for the Standard plan, up to €2,000 for higher plans. A 2% fee applies for exceeding the limit.

Investments

• Stocks: Trading in over 2,000 stocks, including fractional shares. The Standard plan offers one free trade per month, with additional trades subject to fees.
• Cryptocurrencies: Access to over 120 cryptocurrencies (e.g., Bitcoin, Ethereum) with fees ranging from 0% to 1.49% (minimum €1.49). Cryptocurrencies are unregulated and uninsured.
• Commodities: Investments in gold, silver, platinum, and palladium with a 1.99% fee (minimum €1).
• Flexi Funds: Investments in money market funds with an annual yield of up to 4.36% for the Ultra plan, subject to value fluctuations.

Additional Services

• Joint Accounts: Shared accounts for managing joint expenses.
• Revolut Pro: Accounts for freelancers and self-employed individuals.
• Vaults: Savings accounts for specific goals, including group savings.
• Travel Insurance: Coverage for medical expenses, flight delays, and event cancellations for paid plans.
• Lounge Key: Airport lounge access (discounted for Premium and Metal plans, unlimited for Ultra).
• RevPoints: Loyalty program where users earn points on purchases, redeemable for airline miles or rewards.
• Revolut <18: Accounts for children aged 6–17 with their own card and app.
• Mobile Plans: In select countries (e.g., Germany, UK), Revolut offers mobile plans with unlimited domestic data and roaming.

Banking Services

Since 2021, Revolut Bank UAB has offered on-demand deposit accounts, loans, and payment services in several EEA countries. Deposits are protected up to €100,000 under EU regulations. Loans are not available in all countries.

Plans

Revolut offers five plans with varying limits and benefits:

1. Standard (free): Basic features, free currency exchange up to €1,000/month, ATM withdrawals up to €200.
2. Plus (€3.99/month): Higher exchange limit (€3,000), purchase protection.
3. Premium (€7.99/month): Unlimited currency exchange (weekdays), travel insurance, priority support.
4. Metal (€13.99/month): Cashback, higher limits, premium travel insurance.
5. Ultra (€50/month): Unlimited airport lounge access, global data, highest Flexi Funds yield (up to 4.36%).

Security and Regulation

• Deposit Protection: Deposits in Revolut Bank UAB are protected up to €100,000 under EU regulations.
• Security: Two-factor authentication, biometric login, card freezing, and fraud protection. In 2023, Revolut prevented fraud worth over €550 million.
• Regulation: Revolut Bank UAB and Revolut Securities Europe UAB are regulated by the Bank of Lithuania and the European Central Bank. Cryptocurrencies are unregulated and uninsured.

Advantages and Disadvantages

Advantages

• Competitive Exchange Rates: Interbank rates save up to 2.5% compared to traditional banks.
• Travel-Friendly: Multi-currency accounts, contactless payments, and travel insurance.
• User-Friendly App: Multi-language support, real-time analytics, and budgeting tools.
• Innovation: Regular addition of features like mobile plans and AI enhancements.

Disadvantages

• Free Plan Limits: Currency exchange limited to €1,000/month, ATM withdrawals to €200.
• Weekend Fees: 1% surcharge on currency exchange during weekends.
• International Transfers: Transfers to some accounts may be treated as international, potentially taking 3–5 days with fees.
• Investment Risks: Cryptocurrencies and Flexi Funds are unregulated and subject to value fluctuations.
• Controversies: Reports of unexpected account freezes and slower support for Standard plan users.

User Experience

Users praise the app’s simplicity, competitive exchange rates, and savings on international transactions (e.g., 2.5% savings on EUR payments). Criticism includes account freezes without clear explanations and slower support for the Standard plan. Revolut is popular among travelers, freelancers, and young users due to features like Revolut <18.

Future

Revolut plans to expand into new markets, such as Latin America and the Middle East, and introduce services like mortgages and advanced investment products. The company is also investing in artificial intelligence to enhance personalization and fraud prevention.

References

• Official Revolut Website: https://www.revolut.com
• Revolut Blog: https://blog.revolut.com
• Bank of Lithuania: https://www.lb.lt
• European Central Bank: https://www.ecb.europa.eu