jakiro
Author: Zhang Feng
Revolut is a British financial technology company founded in 2015 byNikolay Storonskywith Vlad YatsenkolondonFounded with digital banking services as its core, its business covers cryptocurrency transactions,Securities investment,Cross-border paymentand other fields.As of 2025, the number of global users will exceed 65 million, ranking 10th on the Hurun Global Unicorn List with a valuation of 330 billion yuan..In 2024, the independent financial management application Revolut Invest was launched, with a management scale of 8.5 billion euros. In July of the same year, it obtained a British restricted banking license..
How can this financial technology “back wave” transform from a simple currency exchange tool into a financial super application serving the world in just a few years?What traditional rules does it subvert?What is the core of its business model?
1. Born out of “pain points” and outlived by the times
Revolut was born out of a real travel pain point experienced by its founder, Nikolay Storonsky.As a financial trader who frequently travels between Europe and the United States, he is deeply troubled by the high cross-border fees and lagging exchange rates of traditional banks.This personal experience made him realize thatglobalizationUnder the wave, the traditional banking industry is rigid and slow in cross-border financial services, creating a huge blue ocean market.
In 2015, just before the British referendum on leaving the European Union, there was an undercurrent of change in the European financial markets.At the same time, the popularity of smartphones, the implementation of open banking (Open Banking) policies, and the unprecedented increase in consumers’ acceptance of digital services have provided excellent soil for the financial technology revolution.Revolut came into being and accurately cut into the “Cross-border payments and currency exchange“This high-frequency, high-pain point scene started its path to breakthrough.
2. “Financial Super Application”
Revolut’s core strategy,It has evolved from a “single point tool” to a “financial ecosystem”, the so-called “Financial Super App”.Its business model can be summarized as a “three-layer pyramid” structure:
Cornerstone layer, free standardized banking services.This is the entrance for Revolut to acquire a large number of users.It offers free digital accounts, UK and IBAN accounts, debit cards (physical/virtual), instant payment notifications, budget management tools and more.These services are comparable to the free current accounts of traditional banks, but the experience is smoother and the interface is more friendly, successfully attracting a large number of young users who are dissatisfied with traditional banks.
Value-added layer, tiered subscription and core financial products.This is key to Revolut’s profitability.On top of the free Standard version, it has launched multiple paid subscription levels such as Plus, Premium and Metal.Paying users can enjoy higher fee-free foreign exchange quotas, travel insurance, airport lounge access, exclusive customer service and other privileges.Particularly with the Metal plan, the metal card itself has become a status symbol.
At the same time, Revolut has rapidly expanded its core financial product line.cross-border remittance,Multi-currency exchange and transfer at mid-market exchange rates, which is where it started;stock trading,Allow users to trade US stocks, European stocks, etc. without commission;cryptocurrency trading,Providing trading and custody services for mainstream cryptocurrencies such as Bitcoin and Ethereum is one of its most controversial and attractive functions;commodity trading,Gold, silver and other precious metals can be traded.
Ecological layer, borderless platform expansion.This is Revolut’s ambition.It is no longer satisfied with being just a “bank”, but hopes to become a one-stop platform for users to solve all financial and even life needs.
business accountProvides one-stop financial management, invoicing, and salary payment tools for small and medium-sized enterprises and freelancers.
“Buy now, pay later“(BNPL)Launched “Revolut Pay Later” to enter the consumer credit market.
travel servicesConsolidate flights, hotel bookings and travel insurance.
open platformThrough API, third-party developers are allowed to build services within its ecosystem.
This “free traffic -> layered monetization -> ecological expansion” model has continuously increased Revolut’s user lifetime value (LTV), forming a powerful growth flywheel.
3. Diversified profit “combination boxing”
Unlike traditional banks that rely on deposit and loan interest rates, Revolut’s profit model is extremely diversified and can be called an “octopus” income structure:
Subscription fee incomeCyclic revenue from paying users is stable and predictable and is the ballast of revenue.
Transaction feesRevenue, including card interchange fees, i.e.Every time a user swipes a card, Revolut gets a small share from the merchant;Forex spreads,Revolut will charge a small fee or add a spread when trading Forex on weekends or when the free limit is exceeded.
WealthTech RevenueCommissions and spreads from trading stocks, cryptocurrencies and commodities.Especially during the period when cryptocurrency trading was booming, this part of the revenue contributed significantly.
Premium services revenue, i.e. “Buy now, pay later“Interest.Loan interest incomeAlthough still small, it has begun offering personal loans;Enterprise services revenueSubscription fees and high transaction processing fees charged to business users.
This diversified income structure gives Revolut a stronger ability to resist risks when facing market fluctuations (such as the cryptocurrency bear market).
4. Integrated and scenario-based ecology
The core of the Revolut ecosystem is an App.All services – from daily spending, saving, investing to travel planning – are seamlessly integrated into a simple interface.
Data-driven personalization:By analyzing users’ consumption data, Revolut can provide personalized budget suggestions, savings goals and investment product recommendations.
Seamless scene switching:Users can directly use pounds to pay at the real-time exchange rate when they see that their euro account balance is insufficient; they can directly purchase air tickets and insurance when planning their travel budget; they can invest part of their funds in stocks or cryptocurrencies with one click after receiving their salary.This smooth experience greatly improves user stickiness and builds a strong moat.
5. Sturm und Drang and Deep Expansion
The development history of Revolut is a typical “blitz expansion” textbook:
The first stage (2015-2017): single point breakthrough.Focus on multi-currency accounts and cards with no foreign exchange fees and quickly open up the market.
The second stage (2018-2020): horizontal expansion.Crazy addition of new features, such as stock trading, cryptocurrency, insurance, business accounts, etc., upgrading from “tool” to “platform”.
The third stage (2021 to present): in-depth andglobalization.market expansion,Relying on its “digital native” advantage, it has entered global markets such as Europe, Australia, Singapore, and the United States at a relatively low cost.Its application for a global banking license is at the core of its strategy.
Product depth,It has obtained a complete banking license in the UK and has begun to vigorously promote savings accounts and loan services, truly launching an impact on the core hinterland of traditional banks.
6. Why subvert?
Revolut’s ability to compete in the financial market filled with giants relies on the following core capabilities:
The ultimate user experience (UX).The design of its App is famous for its simplicity, intuitiveness and real-time, simplifying complex financial operations into a few clicks, completely overpowering the outdated online banking and App experience of traditional banks.
Agile technical architecture.As a technology company, it develops and iterates extremely quickly, launching new features and responding to market changes in weeks or even days.
Data-driven operations.In-depth use of data to analyze user behavior for product optimization, precision marketing and risk management, far more efficient than traditional banks that rely on experience.
Strong branding and marketing.Through social media, internet celebrity marketing and user recommendation mechanisms, it has established a strong brand image of “cool, innovative and anti-traditional” among young people.
globalizationvision and layout.It has been targeting the global market since its inception, and its multi-currency and multi-language genes give it a natural advantage in global expansion.
7. “Compliance shadow” on the road ahead
Behind Revolut’s rapid expansion is the lingering shadow of compliance.This is the most challenging aspect of its business model.
Global regulatory complexities.Doing business in each country requires a local payments, e-money or banking license.Its pace of globalization has often been slowed down by slow approval processes.For example, although its key British banking license has been obtained, applications in other major markets are still in progress.
Anti-money laundering (AML) and financial crime risks.Its fast online account opening process and high-risk businesses such as cryptocurrency make it a potential channel for money laundering and financial crimes.In the past, Revolut has been criticized and investigated by the UK Financial Conduct Authority (FCA) for weak anti-money laundering controls.
Regulatory uncertainty about cryptocurrencies.The regulatory policies on cryptocurrency in various countries around the world are still evolving, which brings huge policy risks to Revolut’s high-profit business.
Data Privacy and Protection.As a data-intensive technology company, how to comply with strict data privacy regulations such as GDPR on a global scale is a long-term issue it must face.
The strength of its compliance capabilities will directly determine whether Revolut can truly evolve from a “financial technology company” to a “systemic bank” trusted by global regulations.
8. Is it a bank or “everything application”?
Revolut’s gameplay is essentially a “deconstruction and reconstruction” of the traditional financial value chain.It no longer sees the bank as a place or a set of isolated services, but as a programmable, integrated experience embedded in the user’s digital life.
Its challenges are obvious, including pressure for continued profitability, increasingly complex compliance requirements, and the inevitable “big company disease” that comes with increasing size.But there is no doubt about its potential and subversiveness.
future,The ultimate form of Revolut may no longer be defined by the word “bank”.It is trying to become a digital ecological hub integrating payment, savings, investment, consumption, and life services.When all a person’s financial activities are closed loop within one application, the role of traditional banks will be marginalized.Revolut’s journey is not only to become a better bank, but also to redefine the way money flows in the digital age.This game has just entered the middle game.
