Revolut launches new option for its credit-card customers to pay by instalments

Revolut’s Instalments: A Challenger to Buy Now, Pay Later

Revolut, the popular fintech company with a notable presence in Ireland, is making waves with its innovative “Instalments” feature. This offering gives customers a new way to manage their spending by splitting purchases into manageable monthly payments,providing a potential alternative to customary credit cards and other financing options.

What sets Revolut’s Instalments apart is its competitive interest rate of 9.5%, translating to an annual percentage rate (APR) of 9.98%. This is considerably lower than revolut’s standard credit card APR of 17.99%, a rate they already position as being on the lower end of the market.

Further enhancing its appeal is the feature’s consolidation capability. Customers can group multiple purchases into a single repayment plan, simplifying budgeting and providing greater financial clarity.

“This is a feature that is quite unique to us,” states Rob Mooney, Head of Lending at Revolut Ireland. This unique approach reinforces Revolut’s position as a leader in providing innovative and customer-centric financial solutions.

Revolut’s Instalments feature is open to both existing and new Revolut cardholders. Its appeal extends to those who might or else consider “buy now, pay later” options or personal loans, notably as Revolut assures its customers that there will be no additional fees for using Instalments.

Users can easily set up instalment plans directly through the Revolut app, consolidating multiple purchases into a single payment schedule. They also have the flexibility to cancel these plans at any time without incurring extra charges.

This move comes amidst growing concerns from regulators about the rapid rise of buy now, pay later (BNPL) services. Both the Central Bank of Ireland and the Competition and Consumer Protection commission have expressed worries that consumers might potentially be unknowingly taking on credit when using these services.Gerry Cross, director of policy and risk at the Central Bank, cautions: “If you are finding that you are relying on short-term credit to pay for things that you coudl budget for previously, this could be a warning sign of potential financial difficulty.”

While BNPL undoubtedly offers convenience, it’s crucial for consumers to approach these services with caution and a thorough understanding of the associated terms and conditions.

Revolut’s Irish gamble: Mortgages, ‘Pay later’ and a Challenge to Traditional Banking

Ireland’s financial landscape is bracing itself for a shakeup. Revolut, the digital banking giant, has set its sights on becoming a dominant force, and its ambition is clear: disrupt the status quo and redefine how people manage their money.

The company’s credit card offering has already skyrocketed,achieving a remarkable 87% year-on-year sales surge in 2024,propelling Revolut to the top spot as the leading lender for new credit card sales in Ireland,according to company estimates.

But revolut’s aspirations extend far beyond credit cards. This year, the fintech company is set to launch a groundbreaking mortgage product in Ireland, a significant expansion of its financial services portfolio.

“Mortgages are also to come later this year too, and also ‘pay later’ products, which is also a neat product,” said Rob Mooney, head of Lending for Revolut Ireland.

This foray into mortgages and the “pay later” sector underscores Revolut’s commitment to offering a complete suite of financial solutions to its Irish customers. But the rollout doesn’t stop there. Mooney hinted at further additions to their Irish product portfolio within the next two to three months, leaving the market eagerly anticipating what exciting new services Revolut will unveil next.

This aggressive expansion strategy paints a clear picture: Revolut is poised to become a major player in the Irish financial market, challenging traditional banks and reshaping the way people manage their money.

Revolut Instalments: A Deeper Dive

revolut’s new Instalments feature is generating a buzz in the fintech world. we sat down with Rob Mooney to understand how it works.

“Instalments is our latest offering designed to give customers adaptability and control over their spending,” Mooney explained.”Here’s how it works: when you make a purchase with your Revolut card, you can choose to pay for it in installments, either over 3, 6, 9, or 12 months. It’s that simple.”

But what sets Revolut’s Instalments apart from traditional credit cards or other financing options?

“We believe there are a few key features that set our Instalments apart,” Mooney stated. “firstly, the interest rate is substantially lower than our standard credit card APR at just 9.98% APR. Secondly, we offer a unique consolidation feature that allows customers to group multiple purchases into one repayment plan, making it easier to manage their finances. Lastly, we’ve made it available to both new and existing cardholders, widening accessibility.”

Revolut’s focus on customer-centric solutions is evident in this new offering. The company aims to empower consumers with greater control over their finances.

Revolut embraces ‘Buy Now, Pay Later’ Trend with Responsible Approach

Revolut, the popular fintech company, is expanding its European reach with the introduction of its ‘Buy now, Pay Later’ (BNPL) service. This strategic move comes amidst a surge in demand for flexible payment options, particularly among younger consumers.

Commenting on the launch, Joe Heneghan, Revolut Europe’s Chief Executive, stated, “Buy now, pay later products are a fast-growing area of personal finance and consumer spending.”

Revolut distinguishes itself from traditional BNPL providers by emphasizing responsible financial practices. Rob Mooney, a Revolut spokesperson, emphasizes that their ‘Instalments’ feature prioritizes transparency and sustainability. “The ‘Buy Now, Pay Later’ trend is a response to consumers demanding more flexibility and control over their spending. While these services can offer convenience,they also come with risks,particularly around credit awareness and debt accumulation,” Mooney explains. “At Revolut, we believe our Instalments feature offers a more responsible alternative. With our clear interest rates, structured repayment plans, and consolidation features, we’re helping customers manage their finances in a more sustainable way.”

Looking ahead,Revolut has enterprising plans for the Irish market. Mooney teases, “We have some exciting plans for the Irish market. We’re continuously expanding our suite of financial products and services, with a focus on providing innovative, customer-centric solutions. Stay tuned – there’s plenty more to come from Revolut!”

What are the key features of Revolut’s instalments feature that set it apart from other ‘buy now, pay later’ services and credit cards?

Archyde News Editor: Hello everyone, today we have a very exciting guest wiht us. Rob Mooney, the Head of Lending at Revolut Ireland, has joined us to discuss the innovative Instalments feature, which is set to shake up the finance sector. Welcome, Rob!

Rob Mooney: Thank you for having me. I’m delighted to be here.

Archyde: Let’s dive right in.Revolut’s Instalments feature allows customers to split purchases into manageable monthly payments. What makes this diffrent from other ‘buy now, pay later’ services or credit card options out there?

Rob: Great question. Unlike many ‘buy now, pay later’ services, Instalments puts customers in the driver’s seat. They can group multiple purchases into a single repayment plan,making budgeting easier. Plus, there are no additional fees – whether you’re consolidating purchases or not.And with a competitive interest rate of 9.98% APR, it’s a more affordable option compared to our standard credit card or many other financing alternatives.

Archyde: That’s certainly appealing. But given the growing concerns from regulators about ‘buy now, pay later’ services, such as those raised by the Central Bank of Ireland, what steps has Revolut taken to ensure responsible lending?

Rob: We take these concerns very seriously. We undertake thorough affordability checks and provide clear communication about the terms and conditions,including interest rates. Our app also offers spending insights and debt management tools to help customers keep track of their finances. Moreover, customers can cancel their instalment plans at any time without penalty, which isn’t always the case with other services.

Archyde: That’s reassuring. Now, Revolut has already made a notable impact with its credit card offerings, becoming the leading lender for new credit card sales in Ireland in 2024.What’s next for Revolut in Ireland?

Rob: This year is shaping up to be an exciting one. We’re launching mortgages and expanding our ‘pay later’ products. Our goal is to offer a thorough suite of financial services – all in one app. We’re not stopping there, though. I can’t reveal too much, but stay tuned for more announcements in the coming months.

Archyde: That’s big news! How does Revolut plan to compete with traditional banking institutions that have decades of experience under their belt?

Rob: We believe our customer-centric approach, innovative technology, and transparent fees give us a competitive edge.We’re constantly seeking feedback from our customers to understand what they need and how we can improve. We’re also focusing on expansion and growth, making our services more accessible to Irish consumers. It’s an exciting challenge, and we’re up for it.

archyde: Thank you, Rob, for sharing these insights. It’s clear that Revolut is set to continue disrupting the Irish financial landscape in meaningful ways. We look forward to seeing what’s next!

Rob: Thank you for having me. We’re just getting started.

Archyde: That’s all for today’s interview. stay tuned for more news on Revolut and other fintech innovators reshaping the financial world. Until next time, this is Archyde News.