"Revolut alters its prices during financial turmoil" or "Financial adjustments to Revolut's pricing in times of crisis"

Revolut Shifts Focus Towards Sustainable Growth and Increased Revenue

In response to the challenges posed by the Covid-19 crisis, financial technology company Revolut has announced a new focus on sustainable growth and increased revenue. The company, which boasts over 12 million customers and recently raised $500m, is feeling the impact of the pandemic, particularly as it derives significant revenue from interchange fees and travel money.

In a bid to achieve this goal, Revolut has launched a feature-rich "super app" that allows customers to manage all their finances and bank accounts within the platform, thanks to open banking. This new app is part of a larger strategy to drive the revenues that Revolut is looking for.

Another key part of this strategy is the introduction of pricing changes and limits. As of this week, the limit on free transfers on Revolut's base account has decreased from £5,000 to £1,000 per month. Additionally, the weekend pricing for most currencies on Revolut has increased from 0.5% to 1%. These changes may affect users who frequently transfer large amounts of money.

The decrease in the free transfer limit could be indicative of a potential shift in Revolut's customer base or usage patterns. However, the company's research suggests that most of its customers will not reach the new limit.

Revolut's CEO, Nik Storonsky, conceptualized this new business model and publicly presented it around early 2019 with the launch of their European banking license, which enabled them to offer full banking services themselves rather than through partner banks.

It's important to note that the information about these changes can be found in the small print of Revolut's terms and conditions. The company has also been implementing some cost-cutting measures alongside these revenue-generating efforts.

Many money transfer companies and card networks have increased their pricing across various corridors, especially in March, due to currency volatility and adverse macro-economic shocks. This market volatility is the reason for the increase in weekend pricing on Revolut.

Revolut's recent fundraising of $500m indicates its ongoing efforts to navigate the challenges posed by the Covid-19 crisis. The company is aiming for a more sustainable growth trajectory, one that is built on increased revenue and a stronger, more diversified business model.

"Revolut alters its prices during financial turmoil" or "Financial adjustments to Revolut's pricing in times of crisis"