UK fintech startup Revolut launches its online banking service in the US
U.K. financial technology startup Revolut Ltd. today expanded its online banking service to the U.S. in partnership with Metropolitan Commercial Bank Corp.
The venture capital-funded startup offers a digital banking alternative to traditional banks including support for instant payment notifications, free international money transfers and global fee-free travel withdrawals. Revolut offers a prepaid debit card, currency exchange service and peer-to-peer payments.
Coming into its U.S. launch, the company has 10 million users and has raised $836 million in funding to date. It last raised $500 million in February on a valuation of $5.5 billion.
Revolut has a mobile-first strategy, promising that new customers can open an account in minutes via an Android or Apple Inc. smartphone.
U.S. customers will be offered the same services available in the U.K. and Europe, including support for 28 currencies and foreign exchange services at what the company describes as “the real exchange rate, with no hidden fees.” Customers can get their salary up to two days in advance via direct deposit at no additional cost. Deposits are guaranteed by the U.S. Federal Deposit Insurance Corporation up to $250,000.
Pitched at digital natives and millennials, Revolut also offers built-in budgeting tools to assist customers in keeping their finances in check. “With Revolut, you can see exactly how much you are spending each month on things like groceries and restaurants,” the company said in a blog post. “Even more, you can set up monthly budgets for these individual categories, too. As you get close to your budget, we’ll ping you a message to let you know.”
In the future, Revolut said it plans to offer commission-free stock trading and cryptocurrency trading as well. That would place the company in direct competition with startups such as Robinhood Market Inc.
Investors in Revolut include G Squared, GP Bullhound, TCV, Manhattan Venture Partners, Future Fifty, Lakestar, Index Ventures, DST Global, Greyhound Capital and Global Founders Capital.
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