Fintech competition heating up in money transfer space

Revolut seeks to undercut TransferWise, Western Union with new Turbo option.

Revolut, the banking challenger app, has launched a new money transfer product. The firm has the likes of TransferWise and Western Union in the crosshairs, claiming to be cheaper than both.

Revolut has quietly allowed users to make international money transfers in roughly 3-5 days for some time. These transfers are free for amounts of up to £5,000, with a 0.5 per cent charge applying for larger amounts.

Now there is a new Turbo option, which will see international transfers delivered in 1-2 business days, for a flat rate fee of £5 for amounts of up to £5,000, again with a 0.5 per cent fee applied for larger sums.

Revolut launched a premium version of its app in March, in tandem to launching a crowdfunding campaign on Seedrs. Premium users of the app – who pay £6.99 per month for their membership – will be able to use the full suite of Revolut’s money transfer products for free.

In a press release, Revolut said that even its Turbo option is a cheaper means of sending money overseas than rival service TransferWise.

“Despite the rhetoric from many companies claiming to eliminate fees and offer the cheapest rates, Revolut is the only company letting you transfer up to £5,000 each month for free,” said Nik Storonsky, founder & CEO of Revolut.

This is not the first time that Revolut has taken aim at TransferWise. Storonsky accused TransferWise boss Taavet Hinrikus of “fear mongering” after he said at a conference that he wouldn’t base his business in London if he were start again from scratch, due chiefly to Brexit.