Revolut, the money transfer app with no fees and only a fractional charge on currency exchanges, now boasts one million clients across Europe.
The Canary Wharf-based fintech firm’s CEO Nikolay Storonsky made the announcement on Nov. 24 to Reuters, adding that the company planned on reaching 10 million customers by 2020. The average usage per month is 600,000 accesses, Storonsky added.
The UK Financial Reporting Council has authorised Revolut in January of this year, and the company plans to obtain a European banking license in 2017.
Revolut is, however, not yet profitable, Storonsky admitted, nor would he say when he expected the company to get into the black. Investment of revenue in growth for Asia and North America accounted for most of the income, he added.
Revolut doesn’t charge fees for transfers. On foreign exchange, the app gets as close to the interbank rate as possible, then adds 0.5% transaction charge. But you can even avoid the 0.5% if you exchange more than 5,000 pounds or 5,000 euros per month.
What’s more, if you have a Revolut card, you can use it on a local-currency basis when you travel abroad. In other words, no fees for changing money, just go to an ATM and take out what you need.
On that basis, Storonsky said that customers have saved $160 million in foreign exchange fees compared with traditional bank transfers.
Revolut’s reputation is growing via word of mouth, as the company does no marketing. It has just begun to work with small local teams in key markets for user acquisition. It’s also planning to add crypto-currency exchange to its functionality shortly, so that users can move in and out of fiat or crypto as they wish.
In total, users have made 42 million transactions at a value of $6.1 billion.
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