Some price changes at Revolut just came this week in the small print of the terms and conditions. In fact you can learn a lot reading the T&Cs if you have the patience – we do 🙂
What we learnt…
Weekend pricing is going up from 0.5% to 1% on most currencies. That’s what happens when you get hit with some market volatility.
The limit on free transfers is decreasing to £1,000 each month on Revolut’s base account from a previous limit of £5,000. Most interestingly, regarding the limit, Revolut states “which our research shows, most of you won’t hit [the limit] anyway”. This tells us a lot about the typical Revolut customer.
Revolut is not the only player who’s been changing its pricing strategy. As currency volatility and adverse macro-economic shocks hit the whole world, our pricing data shows that many money transfer companies and card networks increased their pricing across corridors, especially in the month of March.
With significant revenue driven by interchange fees and travel money, even Revolut with over 12 million customers and $500m recently raised is feeling the impact of the Covid-19 crisis. Revolut is looking to focus on more sustainable growth and doing so will require more revenue (which has been alongside some cost cutting that has been taking place recently too).
Revolut unveiled its feature rich “super app” last week that allows customers to manage all their finances and bank accounts within Revolut thanks to open banking. Will this plus the pricing changes be enough to drive the revenues it is looking for?