Nikolay Storonsky, CEO of Revolut, on stage at the MoneyConf Fintech event in Lisbon, Portugal.
Seb Daly | Web Summit | Getty Images
LONDON – Digital banking start-up Revolut on Friday rolled out tools for its business customers to accept payments online to compete with payment giants like Stripe and Adyen.
Revolut said its new acquisition solution would allow companies to install plug-in checkout software or develop their own custom features to make card payments over the internet.
According to Revolut, companies can also share links with customers through their platform to receive payments. The service is currently only available in Europe.
Revolut was founded five years ago in London and is best known for its money management app and payment card. In recent years, however, the company has focused more on business banking.
Revolut Business, like the company’s consumer-oriented service, has grown rapidly thanks to its clever app and cheaper exchange rates. Revolut Business has won over 500,000 customers since its launch in 2017.
Now the company hopes to get a bigger share of the booming online payments market. A switch to the payment processing software would turn Revolut against the US company Stripe, the Dutch competitor Adyen and the British colleague Checkout.com.
“Payments are at the heart of every business, so we designed a solution that not only met your business account requirements, but also your payment acceptance requirements,” said Nik Storonsky, CEO and founder of Revolut.
“Companies across Europe know that being able to do business online is now critical to their success.”
Cash consumption declining
Digital payment methods have increased this year and consumers are flocking to ecommerce websites due to public health restrictions amid the coronavirus pandemic.
According to Accenture, cash consumption will drop sharply in some European countries. In the UK, for example, cash use is expected to decrease by up to 28% in 2020.
Revolut is one of the highest rated fintech startups in Europe, valued at $ 5.5 billion. But it’s heavily loss-making: losses triple to £ 106.5m ($ 143.3m) in 2019, despite sales up 180% to £ 162.7m. A push into business payments would provide the company with a new source of income.
Revolut announced it would cut card transactions in the UK and EU by 1.3% and charge a 2.8% fee for payments in other regions. Paid users are entitled to specific permission for free transactions that match their monthly plans.
However, Revolut doesn’t yet have many of the larger, more sought-after customers that have boosted Stripe, Adyen, and Checkout’s revenue, and it’s mostly focused on smaller businesses right now.
Stripe, like Revolut, has aggressively moved into other finance areas, including lending and banking. On Thursday, the company, in partnership with Goldman Sachs, Citigroup and Barclays, launched a service that allows merchants to offer their own bank accounts.
However, Stripe’s co-founder and president John Collison has ruled out any intention of becoming a full-fledged bank.
“We are not a bank and we do not plan to become a bank,” he said via video call to reporters on Wednesday and rejected what he calls Silicon Valley mentality of “doing everything yourself”.