British financial technology startup, Revolut has rolled out a new service that allows merchants in Europe to accept card payments around the clock in real-time, directly into their Revolut business account.
Dubbed ‘merchant acquiring’, the new product offers low fees on consumer card acceptance, namely, it charges a low 1.3% fee for UK and EEA consumer card payments and a 2.8% fee for all other card payments, with no extra fees.
The fintech unicorn further explained that the new solution helps users save on currency conversions as it accepts payments in 14 currencies. They can keep their funds in the same currency, or convert them into another at the interbank rate.
The challenger bank said the new service keeps all business transactions in one place, allowing them to accept, settle and store payments within a single account – without the need to juggle multiple logins and apps. And since customers are transacting within the same system, it gives them quick access to their money as payments are settled the next day.
Commenting on the launch, Revolut founder and CEO, Nik Storonsky said: “Payments sit at the core of any business, so we have crafted a solution that meets not only their business account demands but also their payment acceptance requirements. Companies across Europe know that it’s now essential to their success to be able to do business online. That’s why we introduced a new secure way to accept payments through websites, and we have enabled customers without an online presence to get paid fast through secure payment links. Our mission is to democratize acceptance, and we are already on the way.”
App-Only Firms Are Looking to Branch into Banking
The new roll-out comes as the market for Fintech firms offering alternatives to traditional banks has become fiercely competitive. Revolut is already going up against other established rivals, such as Stripe, which yesterday revealed an expanded portfolio of partner banks that have signed on to offer co-branded banking services.
With a new app and an expanded network of banks, Stripe, which is reportedly valued at $70 billion, continues its push into the consumer finance space.
Revolut has recently bolstered its regulatory profile, having applied for a bank charter with the Federal Reserve Bank of San Francisco and California’s Division of Financial Institutions. Further, it has been among a number of app-only fintech companies that are looking to branch into banking as they diversify their revenue stream and bring new services to their existing customers.