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Business Operations Business Models

How Does Revolut Make Money (Business and Revenue Model)

The Revolut business model

Revolut logo
Here’s what you should know:
  • What is Revolut, and how does Revolut work?
  • How does Revolut make money?
  • Subscription Revenue
  • Interest from Personal Loans and Revolut Credit Cards
  • Commissions from Selling Insurance
  • Interchange Fees (Revolut Visa Credit Card)
  • Trading Fees (cryptocurrencies, stocks, and precious metals)
  • Other Fees (Currency Exchange and International Transfers)
  • Revolut profit and revenue
  • What is the Revolut business and revenue model?
  • Revolut funding, net worth, and valuation
  • Revolut subsidiaries, acquisitions, and exits

How does Revolut make money? Here is a full, in depth, breakdown of their six (6) revenue streams and the different products and services they offer, as well as the Revolut business and revenue model, how much money Revolut makes per year, and how Revolut works.

What is Revolut, and how does Revolut work?

Revolut is a financial services company that specializes in mobile banking, peer-to-peer payments, stock and crypto trading, and foreign exchange.

Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut now has more than 20 million registered users, 500k business customers, and 400k junior accounts across 35+ countries.

So, how does Revolut work? To use Revolut, you can first download the app from the Apple App Store or Google Play store, or visit their website and create an account.

Once signed up, you can do things like trade crypto and stocks, apply for a Revolut debit or credit card, participate in international transfers and currency exchange, and other services.

Some of Revolut’s competitors include Apple Pay, PayPal, TransferWise, Dave, Acorns, and other financial service companies.

Revolut App in Apple App Store | Revolut Business Model | How Does Revolut Make Money? | How Does Revolut Work?
Source: Apple App Store | Revolut

How does Revolut make money?

According to Revolut, Revolut has more than 20 million registered users, 500k business customers, and 400k junior accounts across 35+ countries. So how does Revolut make money off of all these users?

Below is a breakdown of how much money Revolut makes and its revenue model. Including all revenue streams and how much they charge for their services.

Revolut is a UK company, so some of their products listed below that they make money from (like personal loans, credit cards, trading crypto, etc.) are currently not available to U.S. customers at the time of writing this.

Here are the 6 ways how Revolut makes money in 2022

Revolut has a revenue model that makes money in six (6) ways; subscription revenue, interest earned from personal loans and credit cards, commissions from selling insurance, interchange fees, platform trading fees, and other fees.

#1. Subscription Revenue

One of the ways Revolut makes money is through the subscription services they offer to both individual and business customers.

While Revolut does offer a free tier to both individuals and businesses, Revolut also has paid plans for customers who want what the limited free tiers do not offer.

As noted above, Revolut has more than 20 million individual customers and 500,000+ business customers. Although it is unclear how many of each are paying.

How much does Revolut cost? (Revolut pricing plans)

  • Personal plans: $9.99 to $16.99 per month depending on the plan
  • Business plans: $39.99 to $139.99+ per month depending on the plan
Revolut Subscriptions | Revolut Business Model | How Does Revolut Make Money | How Does Revolut Work
Source: Revolut

#2. Interest from Personal Loans and Revolut Credit Cards

Revolut also makes money from the interest they earn on the personal loans they lend out and credit cards approve to customers.

Eligible customers can apply for personal loans between €1,000 and €35,000 with interest rates ranging from 6.65% to 21.45% APR. And as for their credit cards, their APR starts at 18.47% (based on the user’s credit score).

What are Revolut’s personal loan and credit card rates? (Revolut interest rate APR)

  • Personal loan APR: from 6.65% to 21.45%
  • Revolut credit card APR: starts at 18.47%

#3. Commissions from Selling Insurance

Another way Revolut makes money is through the commissions they earn from selling insurance coverage to its customers.

How does Revolut make money from insurance commissions? Revolut makes money whenever a customer purchases one of the insurance products listed above from one of their insurance partners. When this happens, Revolut earns a commission on the sale. Although it is unclear how much commission Revolut receives.

#4. Interchange Fees (Revolut Visa Credit Card)

Revolut also makes money off of the interchange fees they receive from their Revolut credit cards that are issued to users who apply.

How does Revolut make money from interchange fees? Revolut makes money whenever a Revolut cardholder swipes their Visa issued credit card.

When this happens, Visa charges the merchant an interchange fee between 1.15% + $0.05 to 2.40% + $0.10 of the charge amount. From that, Visa gives a percentage of its interchange fee revenue to Revolut. Although it’s unclear what percentage Revolut receives from Visa.

Revolut Credit and Debit Card | Revolut Business Model | How Does Revolut Make Money | How Does Revolut Work
Source: Revolut

#5. Trading Fees (cryptocurrencies, stocks, and precious metals)

Revolut users can also trade crypto, stocks, and precious metals on its platform, from which Revolut makes money from this as well.

The fees vary based on what subscription plan the user has. Users with a Standard or Plus plan will incur a 2.5% fee per trade, while Premium and Metal users will be charged 1.5%.

In addition, users with a Standard or Plus plan will be charged an extra 0.5% on every transaction if they exceed their currency exchange usage limit.

Revolut crypto & metal trading fees:

  • Commodity exchange fees: 0.5% to 1.5% depending on the user’s plan
  • Crypto exchange fees: 1.5% to 2.5% depending on the user’s plan, plus an additional 0.5% if Standard or Plus users exceed their currency exchange usage limit

#6. Other Fees (Currency Exchange and International Transfers)

In addition to all the fees listed above, Revolut also makes money from other fees like currency exchange and international money transfer fees.

Currency exchange fees will cost a user between 0% to 2.5% of the transfer amount and varies based on things like what subscription plan the user has, the currency, and market hours.

And international transfer fees are 0.3% of the transfer amount ($0.30 minimum, $6 maximum) per transaction for external bank account transfers in the same currency. But can cost as high as $4 to $6 per transfer if the currency is in a different currency from the local currency of the recipient.

Revolut profit and revenue

Revolut’s last reported earnings came in 2020 when they brought in $305 million in revenue (£261 million). Since then, Revolut has not released any official reports in regard to company earnings.

Note: Because Revolut is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Revolut business and revenue model?

Revolut makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Interest revenue model
  • Commission based business model
  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Revolut funding, net worth, and valuation

According to Revolut’s Crunchbase profile, Revolut has raised $1.7 billion over 19 rounds and has a valuation of $33 billion as of July 2021.

Revolut subsidiaries, acquisitions, and exits

To date, Revolut has made a total of 1 acquisition.