Revolut, a British fintech company, is starting to sell phone plans in the UK. This makes it the first financial services company in the country to provide telecom plans, and one of the first in the world to do so. They’re introducing eSIMs, which are SIM cards that can be stored digitally, rather than using a physical card in the device. These plans will be available to users in the next few days.
Users of Revolut’s basic app, who don’t pay for a subscription, can use a regular eSIM plan. This plan lets them use the Revolut app to add credit to their phone whenever they need. For example, if a Revolut user is at an airport and their current SIM card runs out of data, they can still use features on the Revolut app for free and recharge their data like usual.
Exploring Revolut’s Phone Plans and eSIM Service
Customers who subscribe to Revolut’s premium Ultra package, which costs £55 ($69.47) per month, will receive 3GB of data for global use. This data allowance refreshes every month, ensuring that users won’t face unexpected roaming fees when traveling to another country.
The expenses for using mobile data abroad have gone up for British people in the last few years. After the UK exited the European Union, several mobile companies like BT, Wise, Vodafone, and Three started charging for roaming again. Before this change, Brits could travel within the EU without paying extra for roaming. Additionally, most mobile providers don’t offer free data in countries outside the EU as part of their regular plans.
Revolut customers who don’t have an Ultra subscription can receive an introductory deal of 100MB of complementary data if they sign up before May 1. This offer remains valid for seven days.
Revolut has collaborated with 1Global, formerly known as Truphone, a UK-based mobile network operator, to introduce its eSIM service.
Tara Massoudi, who manages premium products at Revolut, stated that the reason behind Revolut’s decision to introduce eSIMs was to transform the company into a comprehensive “super app.” This app would offer various services including bank accounts, currency exchange, insurance, travel bookings, and airport lounge passes.
Massoudi explained that, “Our goal is to become the financial super app. Introducing eSIMs is a step in that direction.”
“Travel has always been a significant benefit for our users, and it remains highly important,” Massoudi emphasized. “Therefore, it’s crucial for us to keep advancing in that area.”
Entering the World of Phone Plans
Introducing phone plans is an uncommon move for a financial services company. Many challenger banks have integrated additional services into their apps to encourage consumers to choose them over other options. The objective is to attract a more loyal customer base in the long run.
This aspect is crucial for Revolut. The company, valued at $33 billion in 2022, aims to cultivate a loyal user base and expand its range of paid subscriptions to diversify revenue streams. To achieve this, Revolut requires customers who view it as their primary banking provider for all financial requirements, rather than merely a low-fee travel account used sporadically for overseas trips.
Hermann Frank, the CEO of tech startup Gigs, which assists businesses in establishing and marketing their personalized eSIM phone and data plans, mentioned that Revolut’s decision could be highly profitable for the company in the future.
According to Frank, “This initiative offers Revolut a straightforward way to tap into a lucrative new source of revenue and could be instrumental in the company’s sustained profitability.”
“By enhancing their services with customized phone plans, digital banks such as Revolut can integrate two crucial services within a single app, simplifying the user experience and increasing customer loyalty even more.”
According to Kaleido Intelligence, a firm specializing in roaming and connectivity market analysis, retail spending on travel connectivity services like roaming packages and travel SIMs is projected to surpass $30 billion by 2028.
Frank also anticipates that numerous other banks will introduce phone plans and travel offers within the next 18 months.
Revolut is not the pioneering fintech company to introduce an eSIM service. Zolve, an Indian credit card startup aiding immigrants in setting up banking services before arriving in the U.S., began providing phone plans connected to both physical SIMs and eSIMs in August.
Revolut is launching phone plans in the UK, featuring eSIMs for global use. This aims to improve user experience and loyalty. The Ultra package offers 3GB of monthly data to reduce roaming charges. Collaborations with 1Global showcase their dedication to innovation and becoming a comprehensive financial app.