Revolut hunts for more lucrative clients by expanding its paid offer
- Revolut is looking for more lucrative clients by expanding its paid offer.
- The neobank’s addition of several new features to its paid accounts could help it attract and retain premium customers.
Revolut is updating its paid accounts with new purchase protection and insurance benefits, according to a press release sent to Insider Intelligence. Here are the details:
- Complete Purchase Security: Qualifying items that users purchase through their Revolut accounts will remain covered for 90 days of transaction. If the item is stolen or damaged, Premium Subscribers are entitled to up to $ 2,500 per claim per year. Metal customers are eligible up to $ 10,000.
- Return Protection: Products purchased through a user’s Revolut account within 90 days of the transaction are eligible for a refund. Customers are limited to $ 600 per year and up to $ 300 per item.
- Event Insurance: If a customer is unable to attend an event due to unforeseen issues such as illness or travel delays caused by inclement weather, Revolut will cover the cost of the ticket. Metal and Premium users are entitled to up to $ 1,000 per unused, non-refundable covered event ticket with a maximum of $ 1,000 per year.
introduced these new features while increasing its emphasis on paid account subscriptions. In December 2020, Revolut launched an intermediary account to support its existing Metal and Premium products. More recently, Revolut ad new fees and restrictions on its free Standard account in Ireland, which could be part of a larger strategy to push users into paid accounts. The challenger’s paid subscription revenues represent more than a third of its mix, compared to 23.79% in 2019.
Increasing the attractiveness of its paid offer could help Revolut build a more solid business model and increase its profitability.
Even before the pandemic, the losses of the neobank were hot air balloon. Recent results don’t look any more promising – his annual loss climbed 92.98% to Â£ 206million ($ 264.21million) in 2020.
Paid accounts benefit Revolut in two ways: 1) they allow the neobank to be less dependent on interchange fees linked to the use of the customer card; and 2) they provide a more stable revenue stream because more attractive offers attract and retain more customers. As premium subscribers become a bigger piece of the pie, profitability will become more accessible and Revolut’s new insurance and purchase protection offerings will contribute to this goal.
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