Revolut, the seemingly unstoppable unicorn-shaped Swiss army knife of finance have launched yet another plan. This time the Revolut Plus plan is only £2.99 a month and with it, you get a plan more fitting for the COVID world of purchasing online. (AKA no travel perks) Yes, this is probably the type of plan that Monzo should have launched back in July. It’s like someone at Revolut read the Monzo Plus reviews and feedback and made this plan in it’s ashes. That’s not to say the Monzo Plus plan was bad, it just felt out of sync, even more so as a brand that always felt more in sync than most.
“The main selling point is purchase protection provided by Qover. All paid plans now get purchase protection with different limits on damaged or stolen goods (up to £1,000, £2,500 and £10,000 depending on your plan). You can get a refund on purchases up to 90 days after buying eligible products. If you book a ticket and your event is cancelled, you could also get a refund.
In addition to a new card design, Revolut Plus subscribers can also use virtual cards. You can also create junior accounts with the new mid-tier plan.” TechCrunch
This could be a clever way of turning more free customers into paying customers with an opportunity to upsell them when the world starts to travel again, as the jumps from £0 to £2.99 to £6.99 are relatively small. It will also help to reduce churn as £2.99 a month from their customers is better than £0. Of course, this plan is also designed to increase it’s share of wallet as it’s purchase protection appears on face value to go beyond what standard debit and credit cards currently offer. The addition of designing your own cards (coming soon) and Junior cards sweeten the pill that much more for those with kids, but also it continues to encroach even more on other Fintech’s space. It’s a big financial world out there Revolut, you don’t need it all.
Will this new lower payment tier sink or swim? Or will Revolut get so big that it consumes itself in some weird implosion? Personally, I think it is a very savvy move from the material maker of new financial products that you never knew you needed. As with all things, read the T&C’s first to avoid any nasty surprises further down the line.
Originally published on LinkedIn. Source
