Banking app Revolut has introduced a new feature that will allow many users to use the app just like any other bank account. The introduction of the direct debit feature for the UK pound has enabled users to be able to pay for goods and services with direct debit as it is becoming the norm for many businesses at the moment. Already Euro direct debit services were started last year.
Many businesses prefer direct debits as card transaction fees and chargebacks are usually more problems than they are worth. A direct debit simply removes money from the user’s account and transfers it directly to the other account as stipulated by the user. Also, direct debit orders do not expire unlike cards and they can be used for all sorts of transactions thus indicating their flexibility as regards payments.
In the context of the upcoming Brexit and other factors associated with it, EU and EU economic area partners can now give their various direct debit details to businesses and clients alike within the UK. Direct debits are protected against different kinds of debit errors and fraud within the UK’s banking system by the direct debit guarantee.
Revolut intends to use Modulr’s API for the services as it expands its reach to businesses, clients, and customers within the United Kingdom and beyond. Founded in the UK in 2015, Revolut has offered fintech services to its numerous users and many other financial services which include debit card services, commission-free stock trading, ATM withdrawals, peer-to-peer trading, fiat currency exchanges and cryptocurrency exchanges in different cryptocurrencies as well which include Bitcoin (BTC), Ethereum, (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and XRP direct from fiat.
Founded by Nikolay Storonsky and Vlad Yatsenko, Revolut has moved from its humble origins at Level 39 which is a fintech Incubator in the UK to be a superstar in the fintech sector by raising about $250 million in a funding round and achieving a valuation of $1.7 billion.
This is not to say however that the fintech startup doesn’t have competitors which might also take away its shine. Monzo, for instance, is one credible competitor that is giving Revolut a run for its money. Recent reports of Google wanting to start its own fintech banking company as well has led many to believe that the undisputed reign of Revolut is coming to an end. Recent reports of Natwest which is a subsidiary of major UK banking behemoth RBS about it launching a digital bank further adds intense competition for Revolut which in six years has revolutionized the United Kingdom’s financial sector.
As to the success of Revolut in being able to survive the incoming onslaught by competitors in the next few years, one thing is certain Revolut has to innovate or fade away as another unicorn may take its place if it doesn’t.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.