Fintech startup Revolut has reached a great milestone. The company now has more than one million customers in Europe two and a half years after launch.
The company says that customers have saved $ 160 million in exchange rates compared to a traditional bank account (£ 120 million). The startup tries to match interbank rates as much as possible and charges 0.5 percent of its transaction if it does not have a premium account and exchanges more than £ 5,000 / € 5,000 per month.
Revolut also applies a small 0.5 percent to a 1 percent margin when the forex markets are closed over the weekend. This is still much cheaper than using your regular bank account to start an international transfer.
When you use the Revolut card to pay abroad, the company also uses the same exchange structure, which is much cheaper than traditional foreign transaction fees.
More interestingly, Revolut is acquiring between 3,000 and 3,500 new users every day, and it is accelerating. Three months ago, Revolut only got half of the new records per day. In total, users have made 42 million transactions, representing $ 6.1 billion.
If broken down by country, more than 500,000 customers are based in the United Kingdom. 150,000 users live in France, 60,000 customers in the Baltic. And, finally, Germany and Ireland have more than 50,000 users each. And then there are 200,000 users in other countries in Europe. 42 percent of the user base is between 25 and 35 years old.
Compare with the German startup fintech N26. It has been a while since N26 updated its metrics. As of August 2017, N26 had 500,000 customers who spent $ 5.9 billion in total (€ 5 billion). At that time, the company said it was acquiring 1,500 new users per day.
Assuming linear growth, a small inverse calculation means that N26 should now be closer to the 641,000 users. But it is not clear if the growth of N26 has also accelerated or slowed down. The company has not yet launched in the UK, but is working on it by 2018.
Revolut has recently hired small local teams in key markets to work on the acquisition and growth of users. But that is only the first step since Revolut plans to expand to the US. UU., Singapore, Hong Kong, Australia and New Zealand in early 2018.
Creating an account in Revolut is easier than creating a bank account since it is an electronic wallet. Basically it's like creating a PayPal account. Then you get personal IBANs and a payment card so you can recharge, change, send and spend your money around the world.
Recently, Revolut announced plans to apply for a European banking license. In this way, the company can protect the funds under the European deposit protection scheme. The startup is also working on Apple Pay, Android Pay, travel insurance and the ability to buy stocks, bonds and cryptocurrencies. Those are many features, and should be useful when it comes to attracting new users.