UK-based fintech Revolut announced a new update on Thursday – it has launched British pound (GBP) Direct Debits for all customers located in the European Economic Area (EEA) with local UK account details.
This new feature allows customers to make their regular GBP Direct Debit payments straight from their Revolut accounts. These payments could range from paying utility bills, subscriptions, invoices or gym memberships.
Revolut has become a big challenger for traditional banks, and today’s announcement could allow certain customers to replace their traditional bank altogether. The move is part of the fintech’s goal of becoming a global bank.
The new feature has been made possible thanks to a deal with Modulr, with Revolut using the business payments platform’s API in order to facilitate the direct debits. However, the company has been using Modulr’s API for other services since 2017.
Commenting on the announcement, Nik Storonsky, the CEO and Founder at Revolut said: “Around-the-clock access to a real-time payments infrastructure is key to building any successful financial service.
“We are providing Revolut customers with an alternative digital payments infrastructure unshackled by a reliance on traditional and slow legacy banking. GBP Direct Debits are the latest integration, as we build towards becoming the bank of the future. With Modulr, we not only have a partner we know and trust, but one who we can work with to launch new payment products with ease.”
Revolut has been expanding its operations in recent months. In addition to today’s announcement, the company recently officially launched in Singapore and expanded its partnership with visa to allow it to expand into a further 24 new markets.
“Direct Debits are one of the most requested features from Revolut for Business customers. It’s always our goal to help businesses save time and money, and this feature will make a huge difference on that front,” added Vaidas Adomauskas, Head of Business Product at Revolut.
“We’re proud to be offering this feature that will transform the way businesses transact on a regular basis, whether they are paying bills or paying into employee pensions.”