Revolut, a fintech giant renowned for its digital payment solutions, is making a significant leap to include customers who still rely on cash transactions. The company recently announced the introduction of a new feature that allows UK users to deposit cash directly into their Revolut accounts. This move signifies a pivotal shift for the digital-first company as it aims to cater to a broader audience.
The demand for cash deposit services has been substantial. According to a recent survey conducted by Revolut, 71% of its UK customers had deposited cash with other financial institutions in the past year. This statistic highlights a gap in Revolut's offerings, which the company is now addressing with the introduction of cash deposits.
How the New Service Works
To facilitate cash deposits, Revolut has partnered with Paysafe, a global payments provider. The process is designed to be straightforward and user-friendly. Customers can generate a time-sensitive barcode via the Revolut app, which can then be scanned at participating retail locations. Initially, this service will be available at over 5,000 locations across the UK, with plans to expand to more than 12,000 locations in the coming months.
’’ The service is being implemented in partnership with Paysafe and is designed to be straightforward.’’
The cash deposit service has certain limitations to ensure smooth operations. Customers can deposit a minimum of £10 ($12.87) and a maximum of £500 per transaction. Additionally, there are daily and monthly limits on the amount that can be deposited. The first £100 deposited is free of charge, but subsequent deposits incur a 1.5% fee.
Gabor Hava, Head of Core Payments, Global Business at Revolut, expressed the company's enthusiasm about the new service. “With such a high demand for cash deposits among our customers, Revolut is pleased to bridge another product request of our customers and help those with cash to get access to modern digital financial services.”
Revolut's UK Banking Licence
In another major development, Revolut has received a UK banking licence with restrictions from the Prudential Regulation Authority (PRA), the regulator responsible for overseeing the UK banking sector. This marks the beginning of the ‘mobilisation’ stage for Revolut, a crucial step for new banks in the UK.
The ‘mobilisation’ stage, also known as ‘Authorisation with Restrictions’, is a common practice for new banks. During this period, nothing changes for Revolut's UK customers. They will continue to use their Revolut e-money accounts as usual, while the company completes the necessary build-out of its UK banking operations. This preparatory phase is essential for ensuring that the bank can operate effectively once it fully launches.
Revolut's UK banking license comes as part of its broader strategy to expand its service offerings and solidify its presence in the financial industry. The company, which has over nine million UK customers and 45 million globally, is poised to leverage this new status to offer a more comprehensive range of financial products and services.
The timing of these announcements coincides with the release of Revolut's financial accounts for 2023. The company reported that its Group revenues surpassed $2.2 billion, with record profits before tax of $545 million. These impressive figures underscore Revolut's robust financial health and growth trajectory.
Regulatory Context and Customer Assurance
Revolut NewCo Ltd, a UK subsidiary of Revolut Group Holdings Ltd, now holds a licensed UK bank status, with a Firm Reference Number (FRN) of 981170. The ‘mobilisation’ stage involves certain restrictions, such as a cap of £50,000 on total customer deposits, until the bank fully launches.
During this period, Revolut’s UK customers will remain with Revolut Ltd, a UK e-money institution regulated by the Financial Conduct Authority (FCA). Customer funds are safeguarded in accordance with the Electronic Money Regulations 2011, ensuring that users' money is protected while the company transitions to its new banking status.
Source:
''Revolut launches cash deposit feature for UK customers, with Paysafe'', gamblinginsider.com, July 26, 2024.
''Revolut receives UK banking licence'', revolut.com, July 25, 2024.
