LONDON (Reuters) – Digital banking app, Revolut set to begin issuance of the cards, in the United States of america, at the end of this year, through a partnership with payments company, Mastercard Inc., MA.N., the two companies said on Tuesday.
A FILE PHOTO of Visa Inc. all major credit cards are shown in this figure, figure, December 8, 2017. REUTERS/Benoit Tessier/Artwork
The announcement follows a similar deal last month, Mastercard and rival Visa Inc V. N and, together with the Revolut, as part of its global expansion plans.
Revolut, one of the world’s fastest-growing bank account providers would undercut well-established companies such as Bank of America (BAC.N and JPMorgan Chase JPM.N N N all foreign currency accounts, current accounts, and money.
“We’re going to make sure that our products are a better value for the customers, and the majority of US banks charge $10 per month for a single account and $10-$15 for a local transfer, we can offer a free Revolut, chief executive and founder Nikolay Storonsky, told Reuters.
“Today’s announcement confirms that the two companies have come together to work on a minimum of 50 per cent, of all existing and future cards Revolut is a problem in Europe,” the two companies said.
Revolut is the deal with the Mastercard that can plug into the network so that the Revolut cards are accepted by merchants in 210 countries where Mastercard operates.
The British-based banking, the app, would like to hire 3,500 employees in the next year as it moves into North America and Asia pacific, bringing its total employees to around 5,000.
Fintech companies, such as the Revolut, Monzo, and in Itself, it has grown rapidly in the Uk due to the limit of the conventional banks from the rates, whereas the provision of a generally slicker, but it is a big challenge to build a sustainable income.
Make the most of their money by charging the sub-set of users for the premium features, rather than the lending of money and the traditional banks.
Revolut is also faced with a bigger challenge in the united states, where the customers ‘ wallets already bulge with more maps and local fintech companies, such as Robinhood, have a competitive advantage in the provision of a free stockbroking, and is one of the Revolut strengths.
Revolut is different from the regular banks, in which customers’ deposits are not directly being protected by the government guarantee, but it is held in segregated accounts with conventional lenders.
And that’s why there are slow to trust their life savings to Revolut, since its launch in the year 2015, about 8 million people have signed up for an account, attracted by the slick app, and ” rock-bottom with forex rates.
Reporting by Lawrence White. Editing by Jane Merriman