British fintech and banking firm Revolut has introduced a new ‘spend from crypto’ feature, which converts users’ crypto balance into fiat money that can be spent to pay for everyday purchases.
The new feature makes it faster for Revolut cardholders to sell their crypto assets and push those funds to their credentials in real-time to pay for eCommerce and in-person purchases. The conversion transaction is subject to the exchange rate and crypto exchange fees applicable to each user’s subscription plan.
Whenever a cardholder makes a payment, Revolut Card instantly converts the cryptocurrencies into other fiat currencies and automatically deducts all expenses and commissions, which are yet to be disclosed.
The notice further explains that if the user requests a refund from the merchant, he will be paid any funds due back in fiat currency minus the fees incurred as a result of the conversion from crypto into fiat.
“We’ve made a change to our Crypto T&Cs to include a new ‘spend from crypto’ feature, letting you use your cryptocurrency balance to pay for everyday purchases on your Revolut card,” the company wrote.
Crypto cards are becoming the norm that is quite popular since they allow users to cash out their digital assets and spend them at thousands of card-accepting merchants worldwide. These cards resolve one of the greatest drawbacks of cryptocurrencies, which is the inability to use them in everyday life with the same ease as traditional currencies.
The move comes shortly after Revolut received a regulatory go-ahead to launch its cryptocurrency services in the UK. As ambitious as it may sound, Revolut has also secured regulatory nods in multiple jurisdictions, including most recently in Cyprus. It has also further expanded its cryptocurrency offering in the US with the addition of 29 new tokens.
After restructuring the crypto product to fit Europe’s AMLD5 regulations, the London headquartered firm is offering its full-fledged digital money platform in the UK. Revolut, which is valued at $33 billion, allows users to buy, hold and sell over 80 tokens through its app in “a responsible manner” and help them understand the risks involved. Its platform charges a 2.5% transaction fee for “standard” customers and 1.5% fee for “premium” and “metal” customers.