NEWSBYTE – Some good news at the end of a difficult year: British FinTech provider Revolut is on course to report its first monthly profit, according to the Financial Times, with further profits forecast for 2021.
The company offers banking services, including debit cards, currency and cryptocurrency exchange, and peer-to-peer payments, with a popular mobile app.
It recently launched more business-to-business offerings, with a merchant acquiring service, which allows businesses to accept online card payments, pitching Revolut against specialist providers such as Stripe.
Founded in 2015 by British Russian entrepreneur Nik Storonsky (CEO) and CTO Vlad Yatsenko, Revolut is one of the UK’s FinTech unicorns – companies valued at more than £1 billion.
It achieved a valuation of over £4.2 billion in February 2020 on the back of a £375 million funding round, making it the UK’s most valuable FinTech startup.
However, Revolut reported deepening losses of £107 million last year, more than three times those of the previous year. At the tail end of 2020, the reported turnaround in its profitability suggests its recent moves to drive down costs are beginning to bear fruit.
The company recently launched into the US, under the local leadership of Ron Oliveira. It plans to acquire a US banking licence. In August, Revolut launched its app into the Japanese market.
At TheCityUK conference in London last month, International Trade Secretary Liz Truss singled out Revolut for praise, alongside Monzo and Transferwise, as a company that is helping to reshape UK digital services.