FT has a rundown today about how Revolut, the European/British fintech "startup" unicorn, makes its money
It steals 0.4-0.6% of all my transactions in different currencies (and across, EUR/ISK/SEK/GBP there are quite some each month) and a nice, juicy spread on every bitcoin purchase + spare-change buy. And then there's the neat little recurring €150 a year. Dudes are having a laugh all the way to the, uh, bank (#1417296).
Revolut and Monzo — its UK-focused rival with about 1.6mn paying subscribers — have put paid to the argument that the average consumer or small business is habitually unwilling to pay for banking. The broader normalisation of monthly subscriptions to everything from streaming to AI chatbots also helps. Revolut and Monzo’s bundled accounts and reward programmes tend to include more lifestyle features that are used daily, such as upgrades to Uber or Tinder accounts. While NatWest and Barclays customers may prefer a different selection of products, they should be just as willing to pay for the right mix of extra services — maybe more so, since they are more likely to use a high street bank as their main account.
Yeah, that Dragonpass (=airport lounge) access is freeeequently used -- though whether Revolut makes money off the €20-25 I pay more or less every time I travel nowadays is another story (most of that is probably passed on to the lounge/airport/Dragonpass operators). Revolut Stays, their booking/travel service, and Revolut Pay, their payment option/MC/Visa competitor, are more obvious money makers... though small-scale for now. I paid for a Revolut Stays booking last month using Revolut Pay, meaning this megabank pocketed both the accommodation referral and the Mastercard/Visa fee they didn't have to incur to process a payment. (instead they gave me pretty worthless "points" in their shitcoin loyalty scheme)
the bulk was from more reliable avenues such as card interchange payments and charging monthly subscriptions for its premium accounts. Revolut’s fee income dwarfs the money that it makes from interest payments.
kind of untinteresting an observation since the bank just received full license and so haven't issued loans in any meaningful sense (= so can't make interest income).
I LOVE that there's some banking competition, and I'm addicted to the simplicity and convenience of an all-in-one money/travel/bookings application so alas, here I am, but of course I HATE THEIR GUTS for not standing up against the real illicit activity -- that is, KYC.
archive: https://archive.md/F2Ezf
i use the revolut free plan , not as my main card, but maybe for 50% of things, and quite honestly, the pure ease of spinning up an account and being able to send money to family and friends is what sold me, plus currency movements.
before, my bank would constantly block my card when i was abroad, even when i warned them, block my card when i tried to do bitcoin buys pre robostats days so initially I got revolut to just do my btc buys, then started using it for more and more things.
i wouldnt leave large savings there, but it's getting more popular in Bulgaria now too, no surprise when the banks here are fucking dinosaurs and you need to visit a branch and jump through hoops to even be able to do iban money transfers from your own account or pay bills.
Watching these stubborn legacy dinosaurs get smoked in real time is quite satisfying,
Agreed. It's kiiind of a big portion why I'm happy to stay with them ... Fuck the
boomerssorry dinosaurs, and let's go with the least bad option.(Then again, banks are in the equilibrium they are, so the more bank-like Revolut becomes, the more like banks I predict they'll behave)
In a world where bitcoin was recognized as the badass money it truly is, would you pay a subscription for a really killer wallet?
Probably — at least if it gave me a bunch of perks, e.g., convenient booking.com stuff, airport lounge access, inheritance, insurance etc
If it was that good then could it really be FOSS
if it were and it was then someone would fork it right?
So then you have wallet alla gatekeeper
Or have I got that wrong?
There's things like Nunchuk and Unchained and Liana doing collaborative things or inheritance backups. So perhaps, the subscription is for the added redundancy. Or something like Sigbash. I can see a lot of scenarios where a wallet can provide added value beyond their code.
Is there some other savings with this service? 150 of whatever currency that is seems steep.
that is the savings. Using any other service for cross-FX spends and transfers would be even more expensive and inconvenient. Unlike the wonders of the greatest disunited states of 'Murica, my sorry existence traverses four currencies on a daily basis... this is the best/least friction version for that I've come across
I'm sure stablecoins will fix all your problems in no time.
if we only had a global, uniform money that could do this. Naturally digital, able to transverse borders etc, be included and custodied in whatever financial-service arrangements I required (insurance, travels, spending rewards).