Revolut, the financial super app with more than 18 million customers worldwide, is rolling out its pay later product, ‘Pay Later’ in Europe as it continues to expand its suite of products to help people get more from their money. Revolut Pay Later is the first pay later product in Ireland that uses an approved credit limit, designed to focus on affordability, putting the customer in control of when they want to use Pay Later rather than being restricted to certain merchant partnerships.
Beginning this week, some Revolut customers in Ireland will be eligible for early access to Pay Later, which will gradually roll out to all users in Ireland – where 1.9 million adults have a Revolut account. Pending the sign-ups for Pay Later, Revolut will look to offer the product in additional markets from the end of 2022 and beyond, with Poland and Romania to be the next markets gaining access to the product later this year.
Qualified customers can use Pay Later for purchases up to a maximum of €499, with any of their Revolut cards, including when paying with a Revolut Disposable Virtual Card which provides an extra layer of security for online transactions.
Customers can spread the cost of a purchase across three monthly instalments with the first instalment paid upfront by the customer at the time of purchase followed by two monthly instalments. The fee of 1.65 per cent per purchase is repaid as part of the final two instalments. Fully integrated within the app, once approved, customers can activate Pay Later on-the-go with one tap. Customers can view their Pay Later balance in the Cards section and in the Pay Later hub. If a customer would like to repay the instalments early, there are no additional fees to do so.
Whether it’s a new washing machine, hotel booking, or a birthday gift, customers can use Pay Later at any merchant that accepts Revolut online or in store. Unlike other pay later products, merchants do not sign up to Revolut Pay Later, and Revolut does not charge them for Pay Later transactions. It also offers a more robust assessment as it approves the credit limit before the transaction rather than offering an instalments payment method at the point of sale.
The fintech checks customer affordability by linking to customers’ existing bank accounts through open banking. Revolut will assess customer suitability and affordability for ‘Pay Later’ through an underwriting process.
Pay Later is another tool to help customers manage their spending all from one app. The Buy Now Pay Later market in Europe is set to grow to £680billion over the next five years. Revolut’s ‘Pay Later’ offering meets the growing consumer demand for this personal finance tool, while offering it in a responsible way, with a heavy emphasis on customer affordability and suitability.
Joe Heneghan, CEO Revolut Europe, commented “Pay Later is an exciting and fast-growing area of personal finance and consumer spending, and we are excited to add Revolut Pay Later to our financial super app.
“Revolut Pay Later gives our customers more control and flexibility over their personal finances, in a responsible way, by enabling them to spread the cost of purchases over three instalments. This encourages people to pay within two months, rather than calling on overdrafts and credit cards which don’t carry the same emphasis on quickly paying back the amount borrowed.”