Yahoo Finance Revolut launches premium 'metal card' to lure wealthier users
Revolut, the free-to-use digital payment firm, has launched a fee-charging premium service with features such as cashback and travel insurance in a bid to entice wealthier customers.
The "metal" card, so called because it will be made mostly of steel, gives cheaper access to some airport lounges and will eventually offer a concierge service that can book restaurants or concert tickets for the user.
One of Britain's latest unicorns – a term given to the "rare breed" of private companies that reach a $1 million valuation – Revolut has attracted two million users by offering bill-splitting and fee-free spending and withdrawals abroad.
It also allows customers to hold a variety of currencies simultaneously, and exchange between any two of the available currencies for free.
The firm already offers some additional perks for "premium" members, for £6.99 a month. The metal card, which also has all the features of Revolut’s standard card, will cost users £12.99 a month.
It pays 1pc cashback on card transactions made outside the European Economic Area (EEA). Any transactions made inside the EEA will pay 0.1pc.
Cashback can be received in a choice of 25 currencies, including American and Canadian dollars, Indian rupees, Israeli shekels and cryptocurrency.
Customers will be able to make free international cash withdrawals up to a limit of £600 per month – compared to £200 for a free user – beyond which there is a 2pc charge.
Revolut is one of a number of banking challengers, such as Monzo and Starling, aiming to take business away from the high street giants. However, it does not yet have a banking licence. This means that money held with Revolut is not covered by the financial services compensation scheme (FSCS), leaving customers with little protection if something goes wrong.
The lack of a licence also means there are no overdraft facilities or personal loans available with Revolut.
A Revolut spokesman said it should get its European banking licence by the end of the year.
Finance expert Rachel Springall, from Moneyfacts, the data firm, said “Challengers of the high street banks such as Revolut are making a prominent mark with their carefully tailored accounts. This latest metal card will be highly appealing to customers who are interested in cryptocurrency."
