Revolut Ventures into Telecom Services with eSIM Launch

Revolut, a leading British financial technology company, is breaking new ground by venturing into the telecom industry with the launch of phone plans in the U.K. This move, exclusively revealed to CNBC, marks a significant milestone, making Revolut the first financial services firm in the country to offer such services and among the pioneers globally.

The introduction of eSIMs, which are virtual SIM cards stored digitally within devices, is set to revolutionise how customers access telecom services. Starting this week, Revolut will roll out its eSIM plans, offering users unparalleled convenience and flexibility.

Even customers on Revolut’s basic app experience, without any subscription, can benefit from the standard eSIM plan. This enables them to access their Revolut app seamlessly, allowing for on-the-go top-ups of their phone’s data as needed, ensuring uninterrupted connectivity, especially during crucial moments like traveling.

For premium Ultra package subscribers, priced at £55 ($69.47) per month, Revolut is offering 3GB of global data with a monthly refresh, eliminating concerns about unexpected roaming charges while traveling internationally.

The timing of this launch is particularly pertinent as the cost of mobile data usage abroad has surged for Brits in recent years, with roaming charges being reintroduced by several mobile carriers post-Brexit. Revolut’s initiative to provide inclusive global data access addresses this concern directly, aligning with its commitment to customer-centric innovation.

Revolut has strategically partnered with U.K. mobile network operator 1Global, formerly known as Truphone, to facilitate the launch of its eSIM service, ensuring reliability and seamless integration.

Tara Massoudi, general manager of premium products at Revolut, emphasised that the decision to offer eSIMs aligns with the company’s vision to evolve into an all-encompassing “super app,” offering a wide array of services beyond traditional banking. Massoudi stressed the importance of innovation in the travel space, a fundamental value proposition for Revolut users.

While financial services firms rarely venture into telecom offerings, Revolut’s foray underscores its commitment to enhancing customer experience and diversifying revenue streams. The move aims to foster long-term customer loyalty, transforming Revolut into a primary banking provider for users’ diverse financial needs.

Hermann Frank, CEO of tech startup Gigs, praised Revolut’s strategic move, highlighting its potential to unlock a lucrative revenue stream and enhance user stickiness. The fusion of banking and telecom services within a single app is poised to streamline user experience and deepen customer engagement.

Revolut’s expansion into telecom services comes at a time when retail spending on travel connectivity services is projected to surge, indicating significant market potential. With the telecom industry poised for disruption, Revolut’s innovative approach sets a precedent for other financial services firms to follow suit in the evolving landscape of fintech.

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