Revolut, London-based fintech startup is launching a debit card. It provides users 1% cash back in cryptocurrencies. The news was reported by Business Insider and published after Revolut became a so-called unicorn. A unicorn is tech giant that privately held startup and is valued at more than $1 billion.
Nikolay Storonsky, Revolut’s chief executive stated Business Insider that “In the next three months we’re going to launch Platinum cards — it’s a metallic card that allows you to get 1% cash back in cryptocurrencies and also provides you a concierge service.”
This isn’t the Revoult first invasion in the field cryptocurrencies. The digital bank began letting its customers trade cryptocurrencies via its app towards the edge of last year. The Revolut customers can purchase Bitcoin, Ethereum, and Litecoin since December.
As the outcome of the step, Revolut conceded in the month of February that it announced the news in December last year. Revolut accumulated 5, 00,000 customers, in January and February to take its total customer base to 1.5 million.
We saw quite a big volume in December. January, February, March it came off but that’s in line with the whole market. When the prices move again, I think we’ll see higher volumes but for now, with cryptocurrencies down, no one is buying it.
Revolut is aiming to replace conventional bank accounts and claims to develop $1.8 billion in transactions each month. It has established banking industry after major lenders disclosed to stop customer purchasing Bitcoin and other cryptocurrencies with their credit cards. The step towards cryptocurrencies is putting Revolut at the great difference.
Lloyds banking group and Barclays’s reviews
Lloyds banking group and Barclays claims the plan is to stop people utilizing their credit cards to purchase cryptocurrencies. This is been followed on by many U.S. high street banks. The bank is worried that people can withdraw cash and get stuck with debt. Later they won’t be able to pay off if the prices of cryptocurrency fell down.
This move by the banks is considered as a direct response to Bitcoin’s end of year Bull Run. It is witnessing a climb to an eye-watering $19,000 per Bitcoin before falling sharply in the month of January.
Concurrently, other companies have done well from the booming popularity of Bitcoin and other cryptocurrencies in this year.
Plus500 is the online trading platform, it announced demand for its cryptocurrency derivatives in the first three months of the year and lead to a nearly 300% jump in revenue. The profit has climbed by 400%.
In the first three months of 2018, the Aim-listed Plus500 posted its revenue of $297.3 million. The income before the interest tax is deflation and reimbursement of $237.3 million.
Withal, Plus500 is warning customers that it dint except “such an exceptional performance” to carry through to the list of the year as Bitcoin fever which is been abated. The Revolut card bears a monthly fee which is similar to its existing Revolut premium card. Basically, it costs £6.99 a month and provides various services such as travel insurance.