Revolut plans to roll out a credit card offering in the United States
- The British neobank Revolut plans to deploy an unsecured line of credit in the United States.
- A US offer would mark the first launch of a Revolut credit card outside certain European markets.
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plans to roll out an unsecured line of credit in the United States this fall and credit card offerings in late 2021 or the first quarter of 2022, Revolut US CEO Ron Oliveira told Financial News.
A US credit card offer would mark the first launch of a Revolut credit card outside certain European markets where it can carry its Lithuanian banking license. The neobank aims to reach 1 million US users by the end of the year and has conducted a marketing blitz to achieve that goal.
The credit offers, when they materialize, will join a host of other features Revolut has brought to the US market in recent months, including:
- Professional accounts, which Revolut spear across the United States in late March.
- Cross-border remittances between the United States and Mexico, which debuted end of July.
Another sign that Revolut is all-in on the United States is its application for a US banking charter in March, which would give it the flexibility to strengthen its deposit solutions and expand into credit products without its US partner bank, the Metropolitan Commercial Bank.
Preparing credit products for a U.S. release marks another milestone in Revolut’s efforts to monetize its huge customer base as it – and its rivals – move towards profitability.
In August, the neobank also Trek its securities trading charges for the second time in less than a year. This and its plan to offer income-generating credit products in a new market suggests that profit is increasingly the goal of Revolut, instead of focusing exclusively on rampant user growth.
The moment when Revolut is pivoting towards profit generation could be due in part to pressure from its main competitors:
- His British neobank rival, Starling, has begun reach a monthly profit in October 2020 and expects to make its first annual profit in its current fiscal year, according to CNBC.
- Atom Bank, a British neobank focused on savings and mortgages reported its very first monthly operating profit in the quarter ended in June, by AltFi.
- Revolut’s largest US neobank competitor, Chime, revealed in September that it made a profit as measured by EBITDA, according to TechCrunch.
Revolution has reached the breakeven point in November 2020, but expanding its product line to include more revenue-generating offerings can help it maintain those profits and prove that it is capable of monetizing its huge customer base.
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