The weekend surcharge is well known by everyone and revolut never tried to hide it
I don’t think it is well known (but perhaps in a Monzo circle!), I actually asked one of their employees at a Rev rally and he said it was always at interbank rate even on weekends! There isn’t a fees section, you have to search through FAQ’s to find it. It’s not transparent when you compare it to Transferwise who list exactly what fees you’ve paid per transaction i.e. fees @ 0.35% = £x
Doesn’t Revolut always display the exchange rate when making a conversion in the app? If so that would count as transparent for me, even if the exchange rate displayed is slightly different due to their markup. It may not be the best exchange rate, but it’s still transparent since you know what you’re going to pay.
Isn’t the MasterCard rate a 0.75% markup on the spot rate? In which case even at 0.5% weekend markup to account for thingy Revolut should be cheaper quite a bit of the time. Not including Thai Baht, Russian Ruble and other illiquid currencies.
Except that it’s a markup on whatever the rate was on the Friday, so could be very different
Which means they absorb costs especially considering the value of the pound keeps going down against currencies rn
The MasterCard rate is actually closer to 0.2% above interbank, but it’s set once a day I believe while the interbank is always fluctuating, meaning you have a good chance MasterCard is actually cheaper
Let’s keep this on-topic, please! I’ve removed a couple of posts above.
Its all about Revolut so appropriate in this thread.
Monzo fintech to :
I worry about Revolut for two reasons:
1: they have to be seen as a competitor. I don’t think it’s a great product to be honest but it sure is growing fast.
2: should financial services firms be playing the game they’re playing? With Monzo you see Tom making sensible decisions such as become a bank, build in the proper features, bring down the cost per user. Revolut is like their drunk uncle who is chucking money at everything and hoping against hope that the money keeps coming in at a rate to cover the outgoings. It feels unsustainable and out of control. Is your cash protected in the same way if they go bust?
You’re forgetting that Revolut have a freemium model that already generates material revenue. Besides, both companies have no problems raising private funds to fund their growth and their primary competition is legacy incumbent banks not each other.
Sustainability issues over the medium term aren’t pressing and they certainly are not out of control imho, just have a different business strategy.
“If you choose to open a full current account with Revolut Bank in the future, any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS).
It’s worth pointing out that this scheme is not currently in place, so your current funds with Revolut remain safeguarded in accounts with a tier one UK bank, as per our obligations under the e-money regulations.”
Blog post from Revolut
Could I ask what this means for Revolut?
Now they have a banking license what does this allow them to do differently than what they currently do?
I would think Revoluts banking Licence it is a restricted banking licence at the moment (?) and not a full banking licence, so I don’t think much will change in the short term - it took Monzo roughly 8 months to have their restrictions lifted to gain a full banking licence.
- from the third paragraph in their blog post
“Now, it’s worth pointing out that nothing is going to change right away. Despite being granted with a licence, this does not automatically turn us into a bank right away.”