Having already unveiled the ability to set up euro direct debits last year, Revolut has now added the feature to UK pounds.
The challenger bank’s latest move means people can set up direct debits transferring money directly from people’s Revolut accounts and into the recipient’s, instead of having to go via Visa or Mastercard.
For businesses, this means they can skirt the costly fees associated with going through card providers, which is why may British businesses prefer direct debits, TechCrunch reported.
The new feature will be rolled out across the European Economic Area.
Revolut partnered with Modulr, a payment as a survive API that recently invested £20m into the Scottish FinTech industry, to set up the new direct debit service.
It has been a few busy months for Revolut. Over the past three months alone, the challenger bank has tapped JPMorgan for help to raise a $1.5bn round, confirmed Martin Gilbert as its new non-executive chairman, announced booming numbers in Romania and selected Bottomline Technologies to boost its real-time payments abilities.
But everything is not just good headlines. In October, Revolut reported that its losses doubled in 2018 to just under £33m, suffered a big service outage that left customers unable to log into their accounts and kept feeling the growing competition from other UK challenger banks like Monzo and Atom bank, both of which had raised more money than Revolut between 2014 and the first half of 2019.
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