Revolut considers US credit card strategy
In its attempt to make more inroads in the United States and differentiate itself from its digital banking counterparts, the British company Revolut is preparing to offer credit across the Atlantic.
As reported Monday, August 30 on sites such as Financial News, the card could arrive by the end of the year. Revolut already offers credit offers in some EU markets. Ron Oliveira, CEO of the company in the United States, said the company will offer unsecured line of credit and credit cards.
With this launch publicly declared and given a timeline, Revolut’s decision does a few things. First, this is in addition to other actions Revolut is taking in the United States. And all this is in addition to its pending listing, via IPO, on the US stock exchanges. So, in other words, success (or challenges) in the United States will quickly spill over into stock prices.
Regarding the United States, in a recent example, Revolut said over the summer that it was establishing a payment corridor for the United States and Mexico to facilitate the movement of funds between the two countries. .
See also: Revolut introduces payment corridor for money transfers between the United States and Mexico
And it laid the groundwork for a full-fledged presence in the United States, where earlier this year Revolut said it would begin operating in all 50 states, after submitting a draft U.S. banking license application.
Also Read: Revolut Expands Digital Banking Services to US
If the past is a prologue, recent product launches in the UK may indicate what’s to come. Last month Revolut said it was teaming up with UK employers to offer early access to wages through its Payday offer.
Find out more: Revolut Intros Payday Early Wage Access for UK
The planned launch of a credit card and unsecured lines of credit product puts Revolut more clearly in front of companies that, through acquisitions or banking license applications, integrate traditional banking services and offerings into one. digital continuum, which notably includes credit products. Among the more visible competitors is LendingClub, which has acquired Radius Bank (the deal was concluded in early 2021) and prepared to offer cross-functional functionality across a range of activities, from debit to credit.
More Details: LendingClub CEO Announces Purchase of “Transformative” Radius Bank
In a few examples that were noted in PYMNTS coverage, credit card debt could be converted into loans to be repaid over time, and the rewards from debit expenses could be used to pay off those loans. Varo Bank has started a program to help individuals build or improve their credit rating, and has also developed a card with Visa that is linked to checking accounts.
See also: Varo Bank Launches Visa Program to Help People Get Credit
And, although this is not digital pure-play but a banking mainstay that wants a strong presence in digital channels, Goldman Sachs has grown its consumer / retail operations. In its latest earnings report, Goldman reported a 41% increase in consumer banking income as card balances increased (and the company signaled plans to strengthen its presence on cards and its Marcus offering).
Related News: Goldman Sees 41% Increase in Consumer Banking Revenue
Interest in digital maps
The interest in digital credit offers is there: PYMNTS research found that up to 28 million consumers without a digital card would be interested. About 41% of consumers have digital cards in their digital wallet, which suggests some room for growth.
You May Also Like: 28 Million US Consumers Without Digital Cards Are Taking an Interest in Them
But the field of digital banking is crowded. Separate research from PYMNTS has shown Revolut to be in the top four brands, as determined by its supplier rankings – so certainly the company has a piece of mind where it operates, although the challenge is there while it does. grows in the United States.
More details: ranking of PYMNTS suppliers