The news: The UK neobank will make several features free to use for its US customers and increase fair usage caps across its products and services.
More on this: The changes Revolut has made for US consumers are:
The big takeaway: The expansion of perks for US free account clients is a savvy investment in customer acquisition in a new market, even as Revolut’s top-level strategy pivots toward monetizing its customer base.
Greater flexibility for free accounts contrasts with some strategies that Revolut has deployed recently to drive revenue from existing customers:
Allowing more remittances, crypto trades, ATM withdrawals, and Junior accounts for nonpaying customers, however, is the exact opposite strategy: Pushing hard for new customers at the expense of, for example, the crypto trading commission or ATM fees.
This strategic duality reflects Revolut’s position in the US as a foreign entrant up against stiff competition from both native incumbents like Chase and homegrown neobanks like Chime and Varo. To stand out from competitors, Revolut will need to make its offerings as attractive and frictionless as possible. Hiking the caps on fee-free services is a strong start.