Revolut Redefines Banking with Phone Plans
Revolut introduces eSIM phone plans, merging finance and telecom, revolutionising customer experience and global connectivity.
Revolut, the British financial technology powerhouse, is breaking new ground by introducing phone plans in the U.K., marking a pioneering move in the financial services sector both domestically and globally.
To industry analysts, Revolut revealed its imminent launch of eSIM-based phone plans, a technology that enables the storage of SIM cards virtually rather than in physical form within a device. These innovative plans are set to debut this week, with availability expanding to users in the coming days.
For Revolut's basic app users, devoid of any subscription, a standard eSIM plan will facilitate access to the Revolut app, enabling them to conveniently recharge their phones whenever necessary. For instance, if a Revolut user finds themselves at an airport with depleted data on their current SIM provider, they can seamlessly access features on the Revolut app free of charge and replenish their data as usual.
Subscribers to Revolut's premium Ultra package, priced at £55 ($69.47) per month, will enjoy a generous allocation of 3GB of data for global usage, with automatic monthly refreshes. This eliminates concerns about unexpected roaming charges when traveling to different countries.
The expense associated with using mobile data abroad has been a growing concern for Britons in recent times. Following the U.K.'s departure from the European Union, several mobile carriers, including BT, Vodafone, and Three, have reinstated roaming charges. Previously, Britons could roam freely across the EU without incurring additional fees. Additionally, most mobile carriers do not include free data in non-EU countries as part of their standard plans.
Revolut is offering a special introductory deal to users without an Ultra subscription, providing 100MB of complimentary data for those who apply before May 1, valid for seven days.
Collaborating with U.K. mobile network operator 1Global (formerly known as Truphone), Revolut is spearheading the launch of its eSIM initiative.
Tara Massoudi, Revolut's General Manager of Premium Products, underscored the company's strategic decision to introduce eSIMs, aiming to transform the company into a comprehensive "super app" offering a wide array of services, including bank accounts, currency exchange, insurance, travel bookings, and airport lounge passes.
"Our ambition is very much to be the financial super app," Massoudi affirmed, emphasizing the company's commitment to innovation in the travel sector, which remains a cornerstone of Revolut's value proposition.
The move to offer phone plans represents a rare departure for financial services firms. However, it aligns with the broader trend among challenger banks to integrate new services into their apps, fostering customer loyalty in the long term.
For Revolut, building a devoted user base is paramount. With a valuation of $33 billion in 2022, the company aims to expand its roster of paid subscriptions to diversify revenue streams, necessitating a shift toward becoming a primary banking provider for users' financial needs rather than merely a supplementary travel account.
Hermann Frank, CEO of tech startup Gigs, hailed Revolut's initiative as a potentially lucrative venture, citing the fusion of essential services within a single app as a means to enhance user experience and bolster customer retention.
According to market forecasts by roaming and connectivity consulting firm Kaleido Intelligence, retail spending on travel connectivity services, including roaming packages and travel SIMs, is poised to exceed $30 billion by 2028, indicating significant growth potential for ventures like Revolut's eSIM offering.
While Revolut may not be the first fintech to venture into eSIM offerings, its pioneering move underscores the industry's trajectory towards innovative solutions that cater to evolving consumer needs and preferences.
