London-based digital banking firm Revolut has signed up 1 million UK customers, the company has announced, and has 2.25 million customers worldwide.
Just a month ago Revolut, which issues pre-paid debit cards and allows customers to manage their money and make payments via a mobile app without having to open a traditional bank account, said it had 2 million customers globally, so to sign up quarter of a million users in one month is impressive for the rapidly growing company. It also says more than 125 million transactions have been completed by customers, for a total transaction volume of $18.5 million. (See Revolut Hits 2M Users, Announces Investment Platform to Celebrate.)
The company is now looking at further global expansion in the US, Canada, Singapore, Hong Kong, Australia and New Zealand later this year, and says it plans to offer free bank transfers around the world -- "a breakthrough that has never been offered before," according to Revolut, and a marketing weapon it is using to take on incumbent high street and digital banks.
Nevertheless, the scale-up faces strong competition: Monzo has just announced a partnership with London-based TransferWise to enable international payments. While this does cost "a small fee" according to Monzo, it'll be no more than using TransferWise in the traditional way to pay someone overseas. These two options will add more competition to Revolut's upcoming offering, although it has an ace up its sleeve: it's free, which will especially threaten TransferWise's business, which is based on international money transfer. (See Monzo: The Future of Banking?)
Revolut's card works in 120 countries and 130 currencies, enabling users to send money for free. (Image: Revolut)
Nik Storonsky, founder and CEO of Revolut, commented in a pre-prepared statement: “Whilst our organic growth has been exceptional, I believe that we've only reached 1% of our potential. Reaching 1 million UK customers is testament to the great product that we've built and the incredible savings we've offered our customers. However, we are always looking to improve. Our brand awareness is growing across Europe and we're pressing ahead with global expansion."
He continued: "I don't believe in financial borders at the expense of consumers. The world is becoming more interconnected and financial companies should be adapting to this. People should be free to spend and transfer money globally without incurring fees and waiting days."