What Is Revolut and How Does It Work?

Revolut is a digital financial platform that is profoundly transforming the way we manage money. It is an alternative to traditional banks. This alternative approach manifests itself in a multitude of banking and financial services which are accessed via mobile application.

Founded in 2015 in the United Kingdom, the platform has managed to grow rapidly and expand to numerous countries around the world. It is currently one of the financial management apps with the highest number of registered users. Fundamentally, its financial services are similar to those offered by traditional banks. What sets them apart is their innovative and low-cost approach to these services which make them simple, quick, ituitive and cost effective.

As we have pointed out, Revolut is an app designed to manage and carry out various financial operations digitally. We detail some of these financial services which can be used with the Revolut banking app:

• Digital bank account: Revolut allows its millions of users to open a bank account quickly and easily. In a matter of minutes you can activate your digital bank account without having to visit a physical branch.
• International transfers: one of Revolut's most praised services is the facilitation of money transfers to other countries with lower fees than traditional banks and very competitive exchange rates.
• Payments and transfers between users: Revolut also allows you to send and receive money from other users of the same app, instantly and for free.
• Debit or credit cards: these can be both physical or virtual through the banking app. They are used to make general purchases.
• Currency exchange: another of the great options that Revolut offers is the possibility of being able to exchange money between different currencies at interbank rates without commissions.
• Debit card: Revolut also offers a virtual and physical debit card so you can make purchases both online and in physical establishments.
• Investments: Revolut is a platform that offers options to invest in stocks, cryptocurrencies or other assets. These investments can be made directly from the application itself.

Revolut is also known for being a secure option for banking. Learn more about cybersecurity with our article explaining what is Vishing?

Revolut works through its app, available for both iOS and Android devices. In order to get the most out of the platform and all the services it offers, these simple steps must be carried out:

1. Download the application and register by providing the basic information requested.
2. Complete the registration process through identity verification in which you must provide a photo of your document of identification as well as your own image.
3. Add a deposit of funds to your account. You can carry out this operation through a bank transfer, with a payment by credit or debit card or other available payment methods. There is no minimum deposit, although you may need to pay more to get a physical debit card.
4. Once the account is ready and activated to use all the services that Revolut offers, you can make payments, transfers, exchange currencies or invest.
5. From the Revolut app you can request your physical debit card if you want to make payments in physical establishments or withdraw cash from ATMs.

Now that you know what Revolut is and what financial services it provides, you might think it sounds similar to any bank. To better understand why it has become so popular, we look at the benefits and advantages Revolut has when compared to other financial services, particularly in more traditional banking:

• Global Access: Revolut users can use both their account and card almost anywhere in the world.
• Competitive exchange rates: this financial platform provides interbank exchange rates with no additional margin. This makes it very helpful, especially for those who travel frequently or who must carry out transactions in multiple currencies.
• Low commissions: unlike some traditional banks, Revolut usually has much lower commissions for making both international transfers and currency exchange.
• Digital financial management: from the Revolut app, you can access multiple financial management tools such as expense analysis, real-time expense notifications or budgeting.
• Security: Revolut has advanced security measures such as card blocking/unlocking via the app, disposable virtual cards for online purchases and better means of authentication.

In addition to these advantages, Revolut is constantly working on innovation, regularly adding new features and services to keep the company at the forefront of financial technology. You can learn more about managing your own finances with our article on what is a fixed-term deposit?

Although there are many advantages of registering as a Revolut user, it may not be the best financial service for everyone. To illustrate this, we look at some of the possible disadvantages of Revolut:

• Dependence on the mobile app: since it is digital banking, most operations must be carried out through the mobile application. This will be an inconvenience for those who do not have constant access to a smartphone or who prefer to use other means of contacting their bank.
• Customer service: since everything is done through a mobile app, there may be situations in which physical customer service is required. Revolut does not have branches so everything must be done online.
• Free use limits: some Revolut operations may have certain limits, especially if we are talking about international transfers or currency exchanges. In some cases, a premium plan is required to carry out intensive use of the platform.

As with any other financial service, you will need to keep in mind that Revolut is subject to regulations that may change and/or affect the availability of certain services or features. In some cases, this can lead to certain service limitations.

Now that you know what Revolut is and what it is for, you may also be interested in our articles on how to make money on TikTok and how to earn money on Twitch.

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