UK virtual bank fintech startup Revolut is seeking to disrupt the traditional banking industry in the country again. It is adding a new feature where users can pay with GBP direct debits.
Largely, UK residents use cards to pay for goods and services, while some businesses require them to pay using debit cards. So the use of direct debit is quick and easy.
In a nutshell, direct debits draw money directly from the user account and transfer it to the recipient account. Mastercard or Visa are not involved in this transaction process. Also, direct debit cards are cheaper than card processing fees for businesses.
User from the European Economic Area can share their UK pound account details for direct debits in the UK, the local media reported. It is using Modulr’s API for this new feature.
The startup is rolling out early account access for Canandian users ahead of its official launch in Canada, according to BetaKit. Revolut’s global expansion is part of its long-term strategy.
Revolut tapping into the Canadian market will be a huge challenge because of the restrictive Canadian regulations. Currently, it offers prepaid debit cards, currency exchange, stock trading, peer-to-peer payments and cryptocurrency exchange. Revolut has started offering services to greater parts of Europe Australia, Switzerland.
This fintech startup has seen tremendous success in the UK, with a robust regulatory landscape for financial institutions. In 2017, it reported tripled its revenue, grossing nearly $75.1 million in 2018. The virtual bank startup is reported to be opening one million accounts every month.