Romania is Revolut's second-biggest market globally
Revolut has grown fast in the four years it has been available in Romania. Today, Romania is the second-largest retail market in the world for the British fintech, after the UK. Moreover, the company states that Bucharest has the highest concentration of Revolut users in the EU, as one in three working-age inhabitants uses Revolut.
The fintech app, which launched in Romania in May 2018, has reached 2 million clients in the local market.
"Four years ago, when we officially launched our operations in Romania, Revolut was pioneering with over 20,000 customers, early adopters that had discovered our app even before the official entrance into the market. At that time, only 9.7% of the Romanian population used internet banking, according to official statistics. In four years, the percentage of locals using the internet for banking and finances has risen to 18.5%, and there is still room for growth, as the EU average was 58% in 2021," said Gabriela Simion, General Manager of Revolut's Romanian branch.
She added: "At the same time, Revolut in Romania has become one of the company's top performers, with approximately 500,000 new customers added annually, consolidating its position on the local market by launching new financial products."
The typical Revolut user in Romania is about 36 and lives in a big city. Bucharest is the top Revolut city, with circa 420,000 users. Other Romanian cities with a large Revolut customer base are Iasi (68,000 users), Cluj-Napoca (65,000 users), Timisoara (56,000 users), Brasov (50,000 users), Constanta (46,000 users), Craiova (34,000 users), Galati (29,000 users), Ploiesti (28,000 users), and Sibiu (26,000 users).
The company states that since its launch in Romania, customers have spent, on average, EUR 19 per transaction, primarily using Revolut to purchase food and other essential products, pay for entertainment, cover utilities, and to pay for transportation services. Retailers such as Mega Image, Carrefour, Auchan, Lidl, and Profi, petrol stations such as OMV, Petrom, MOL, Rompetrol, and car-sharing platforms such as Bolt and Uber are the retailers with the highest number of Revolut transactions to date.
More and more customers are using Revolut to make daily payments, a fact reflected in a 48% increase in the total volume of transactions in the last 12 months (July 2021 - June 2022), compared to the same period a year before. Romanians also use the app to make transfers, exchange currency, invest in stocks or cryptocurrencies, save their money in digital piggy-banks called "Vaults", make donations to non-governmental organizations through the "Donations" feature, book accommodation for holidays, or manage family expenses with "Revolut Junior".
The latter is an extension of a parent's Revolut account, which can be used for purchases or withdrawing money at the ATM, and also offers special features to help kids between the ages of 6 and 17 learn to manage their money in a safe and controlled environment. The company reports that currently, more than 150,000 local customers use Revolut Junior to give their children pocket money and teach them fiscal responsibility.
When it comes to investments, the number of Romanian clients investing in cryptocurrencies has increased by 140% in the last 12 months. The most popular tokens are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), and Skale (SKL).
Revolut representatives state that they are in a continuous process of innovation and that they are designing new products adapted to the global digital infrastructure to help customers navigate the world of finances safely and effectively. One new addition that will be entering the local market soon is the "Pay Later" service.
Qualifying customers will be able to use this service to pay for purchases up to EUR 499 when making purchases with their Revolut card. The service allows customers to split the cost of purchases into three monthly installments, the first of which is paid when the purchase is made. The service comes with a 1.65% interest rate, which is split up equally between the final two installments.
"Revolut Pay Later gives our customers more control and flexibility to use their personal money responsibly by allowing them to spread the cost of purchases over three installments. It encourages customers to pay within two months, rather than turning to overdrafts and credit cards that don't place the same emphasis on repaying the amount borrowed quickly," says Joe Heneghan, CEO of Revolut Europe.
Founded in London by Nikolay Storonsky and Vlad Yatsenko, in 2015, Revolut now has over 18 million customers globally. The fintech company provides mobile app-based current accounts and a number of services associated with brick and mortar banks. In December 2018, Revolut secured a Challenger bank license from the European Central Bank, facilitated by the Bank of Lithuania. In January 2022, Revolut launched as a bank instead of an e-money institution.
Revolut's services are currently available in the European Economic Area, Australia, Singapore, Switzerland, Japan, the United Kingdom, and the United States, and the company plans on expanding to more regions worldwide.
(Photo source: Linaskk | Dreamstime.com)
