Revolut is in the early stages of developing a points-based credit card, putting it in direct competition with incumbents such as American Express.
It’s the latest in a slew of new products developed by the UK fintech, which has over 50m customers globally and now offers everything from stocks and shares and crypto, to pet insurance.
The rewards-based credit card would use Revolut’s own points system, named RevPoints, which it launched in July last year. Revolut users currently earn RevPoints by making purchases on their debit cards. Two sources familiar with the plans say Revolut intends to build a set of points-based credit cards for each of its subscription tiers.
Sifted has contacted Revolut for comment.
Revolut’s new product line
The reward credit card space in the UK is dominated by larger players such as American Express and Barclaycard, which use proprietary points schemes such as Amex or airline loyalty schemes such as Avios.
It’s an area that’s yet to see the same level of disruption we’ve seen across the current account banking space, with only a few smaller players emerging in recent years. NatWest-backed Yonder is one of the few fintechs offering a rewards-based credit card, but it only has around 30k users.
To compete with established players — such as Amex or Avios cards — Yonder focuses on offering rewards with local restaurants and independent merchants over discounted flights.
It’s not clear yet how Revolut will seek to compete with its competitors. Revpoints can currently be used to purchase gift cards for brands such as Apple and Amazon, and are also exchangeable 1:1 with popular airline miles programmes.
The rewards card is the latest in a long line of new product verticals Revolut’s pushed into recently. Sifted reported in January that Revolut is developing a private banking service for high-net-worth individuals (HNWIs), which will feature investment services and wealth management.
Revolut is also set to debut an AI-powered financial assistant and a mortgage product this year, according to a product map outlined at the tail end of last year.
Read the orginal article: https://sifted.eu/articles/revolut-reward-credit-cards/
