2 years ago
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The company, which is currently valued at $33 billion and dominates the retail stock trading space in the UK, looks to take on the likes of Robinhood and Square in the US as the race for becoming a financial super app is well and truly on. The platform now has over 16 million users and the platform that wishes to be the financial super app needs to establish a place for itself in both the European and US markets which is what Revolut is trying to do. It launched in 2015 as an app that would help travelers to save conversion charges on their currency conversions but has since grown and branched into the trading industry with several features and products launched within the platform.
“We are building a single app where people can manage all aspects of their finances, from banking and foreign exchange to cryptocurrency and stock trading,” CEO and Founder Storonsky said. “We’re eager to break down common barriers to entry around stock trading such as account minimums and complex interfaces.”
The app has been piling on new features that are tailored to the regions that it launches its product in and that has helped it to quickly gain a large userbase in these regions. It launched in the US last year and has quickly added high-interest savings, small business banking, US-Mexico remittances, and crypto trading to its list of features. It also has been testing its stock trading service that will allow its users to trade in ETFs and NASDAQ and NYSE listed companies. It would also be looking for fractional share trading and also allowing its users to invest using spare change from their card transactions. Through this, it is clear that the company is looking to innovate continuously in a bid to stay on top of the game at all times and push products tailored to the user’s needs.
Revolut would also be looking to generate revenue from payment for order flow, a business model that Robinhood also follows and which has helped both the companies to offer commission-free trading for their respective users. This business model has come under scrutiny recently by the SEC and it remains to be seen what these investing apps would do if this model is barred.
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