Revolut revolution
Game-changing app is transforming how the younger generation handle their cash
IT’S forward march for Ireland’s 1.7million Revolut army.
The young demographic who use the money app – one third of the population – have a month to order free replacement debit cards or they’ll stop working on June 21.
It’s to do with Revolut making major changes to its service in Ireland after it officially launched as a bank here earlier this year.
The digital finance service – which allows money to be transferred as fast as a text message – is part of everyday life for Gen Z and younger Millennials.
But those over 35 may wonder: What is Revolut? And how does it work?
Is it a game-changer or just part of the move away from cash and towards more digitised monetary services demanded by the next generation?
Will it hasten the end for cash, which is predicted to phase out within the next decade anyway?
Revolut is the finance app that has – literally – revolutionised how we spend, send and save money.
With millions of users in Ireland – and growing – it’s leading the charge in making cash a thing of the past.
Its popularity was boosted during the pandemic as so many moved to digital banking and contactless payments.
It has tapped into a new generation who embrace new payment technologies – and see the fusty old bank account as firmly in the past.
It’s such a part of lifestyles, younger consumers have their own jargon when transferring money to their friends: “I’ll Revolut you.”
It’s joined the Hoover and Google as a brand that’s so widely used, it has its own verb.
It would be hard now to find a young earner who doesn’t use the app as to split bills with friends, and control money fairly.
These days, there’s no excuse for paying back friends instantly if they take the drinks or dinner bill.
The London-based company was clever enough to spot a gap in the tweens/teens market who were too modern for junior bank accounts yet too young yet for bank cards.
Its service, Revolut Junior, is now used as a kind of tech-era pocket money service for kids or a digital piggy bank targeted at those aged seven to 17.
Parents can set kids up with a Revolut account where they can lodge allowance money for chores, or where notes given by aunts and uncles can be transferred onto the account.
It means they can learn how to spend and manage their money from a young age.
Put simply, Revolut is a mobile digital banking application and financial technology (fin tech) which is available on all smartphones.
It allows users to purchase items; transfer money to other accounts – including abroad in 29 currencies – and offers better control of money and spending due to convenience.
The benefits of using Revolut is the ease of use and simplicity of service, with the high quality of its mobile app.
Users can transfer money from their regular bank account into a personalised Revolut wallet.
To purchase items, a user can order a physical card, or set up a digital card on any smartphone device through Google pay on Android and Apple pay on Apple devices.
Transferring money to a separate Revolut account is easy – all that’s required is the other user’s phone
number and/or Revolut username, and by typing in the amount the user requires transactions can occur instantly. Setting up an account is quicker than setting up a regular bank account.
Once the app is downloaded onto a smartphone, by providing a name, address, date of birth, contact details, and photo ID the user is half-way there. Users set up a four numbered passcode allowing access 24/7.
Charges on transactions are applied if users send money abroad, unless within the Single Euros Payment Area. There are also penalties if users engage in more than five ATM withdrawals or monthly withdrawals of up to €200 – the threshold increases depending on Revolut plans.
As for Revolut Junior, children and teenagers can set up an account tied to their parent’s existing account.
Once a parent has transferred money into their child’s account this will allow them to purchase items with their phone or an ordered Revolut card.
Parents have full oversight of their child’s transactions.
With banks like KBC and Ulster bank leaving the Irish market, will Revolut replace traditional banking?
Revolut received a banking license from the European Central Bank late last year.
But Daragh Cassidy, head of communications at the consumer financial help service Bonkers.ie, believes Revolut won’t compete with existing lenders yet.
He said: “Revolut charges quite heavily for cash use once monthly limits have been reached.
“And with no branch presence, you can’t lodge cash or cheques.
“It doesn’t offer overdrafts or mortgages – for now at least.”
Mr Cassidy added that “there’s still a generation of people, those over 50 in particular, who will be wedded to cash for a long time to come”.
He also believes that customer service presents a further obstacle for the burgeoning fin tech.
He added: “You do hear occasional reports of people getting locked out of their accounts for suspected fraud and then having huge difficulty getting access to their accounts again.”