Revolut is a competitive money exchange and transfer service that is expanding into online banking as it started to offer virtual cards to its customers. Depending on the amount being exchanged or transferred, the fees charged may be attractive or not.
Customer support service could have been better, and the overall service requires improvement. We would suggest Revolut for current spending, particularly overseas while maintaining somewhat reasonable balances. However, since it has a Tier 1 Regulator banking license, we do not consider it a safe service in the same way that conventional banks do. It is worth exploring top Revolut alternatives, but let’s dig deeper into this topic together.
What Is Revolut?
Revolut is a prominent worldwide Internet money platform. It is used by over 40 million individual clients and supports 36 currencies in more than 150 countries. The company was founded in 2015 and is based in London. The firm is privately held, with the current CEO and cofounder holding around 20% of it. As of 2024, the corporation recorded total sales of $2 billion and profits of $350 million. It provides a variety of accounts in several currencies, as well as debit cards.
Key Features & Limitations
The popular majority of Revolut account holders mention the following features of the solution:
- Revolut provides personal and corporate accounts. It works internationally, facilitating transactions in 36 currencies across 150 countries;
- Multi-currency account, competitively cost international transfers, and cheap exchange rates;
- Mobile-friendly platform;
- The opportunity to pay in domestic and foreign currency;
- Attractive FX rates throughout the week and within restrictions;
- Savings accounts invested in Fidelity money market funds;
- Easy-to-manage international transfers.
At the same time, many of them are no happy with significant service limitations that cover:
- Tier 2 bank regulator: inappropriate for big deposits;
- Not to be viewed as the go-to site for investment;
- Poor customer service.
On top of that, Revolut has regulatory obstacles in obtaining a banking license in the United Kingdom, since only a Lithuanian banking license is presently in effect in Europe.
These points make people look for other similar banking services that they can use instead of Revolut. And we should admit that this happens for a good reason. Although the company strives to make their product better, there are still many things to improve.
Safety Considerations
The company's headquarters are in London, UK, while the subsidiary Revolut Bank UAB, situated in Vilnius, Lithuania, serves the EEA markets. The firm is therefore controlled by the FCA in the United Kingdom (as an Internet money platform, not a bank entity) and the Bank of Lithuania in Lithuania (as a bank, but by a Tier 2 regulator). As a result, Revolut only has one banking license, in Lithuania, and is in the midst of a lengthy and uncertain process to gain a banking license in the United Kingdom.
Cash Custodians and Guarantee
Depending on your location, money kept at Revolut is protected by either the safeguarding solution in the UK or deposit and investment insurance provided by the Bank of Lithuania in EEA countries. In the United Kingdom, the safeguarding solution entails holding clients' finances in a special protected account with another bank or investing them in low-risk, regulator-approved assets.
Revolut's EEA clients benefit from the Bank of Lithuania's independent deposit protection mechanism, which is identical to that of regular banks. The customer's money is only covered in Lithuania up to EUR 100,000. The UK protection is meaningless since it is not client-specific. Virtual currencies, investments, and commodities are likewise excluded from the Lithuanian guarantee.
Security
The Revolut app has extensive security measures, such as two-factor authentication (2FA) and fingerprint scanning. Revolut monitors suspicious financial transactions and follows basic “Know Your Customer” (KYC) measures while creating accounts.
Transfer Fees
There are no fees for transfers within the SEPA zone and the United Kingdom. Transfer costs for international transfers vary by country and are usually disclosed beforehand. Keep in mind that intermediary banks may levy their own fees.
Exchange Rates and Fees
Revolut exchange rates vary by currency and are generally 0.1-0.8% lower than central bank exchange rates. The exchange rate is the same for both transfers and payments. If you have one of the two cheaper memberships, you may be charged if you exceed the total free exchange limit. On weekends, a 1% currency conversion charge applies between 5 p.m. New York time (11 p.m. CET) on Friday and 6 p.m. New York time (midnight CET) on Sunday.
Final Say!
While many great features are available with Revolut, this payment service still comes with a few downsides to be aware of. If you are not ready to compromise the cons of the solution, then there are many good alternatives to consider. So you will hardly suffer from the shortage of options.
