Revolut to bring processing in-house
The latest issues were flagged on social media by Revolut’s users from around the world on 3 November, with their cards being declined and payments rejected.
Revolut responded quickly, apologising and explaining the problems were caused by the company it outsources its processing to. This is understood to be Global Processing Services (GPS), which provides similar services to many fintech players and challenger banks, including Monzo, Starling, Fire, Pockit, U Account, Curve and Loot.
Exasperated, Monzo was the first to announce plans to bring its payment processing in-house earlier this year. Revolut is now following suit – the company says its own technology will be ready in early 2018.
Revolut has also applied for a European banking licence, which it expects to be in place by H1 2018. The company says it will then “immediately begin offering deposit and credit services in selected markets; including overdrafts, personal loans and term deposits”. The banking licence will also enable Revolut to protect customers funds up to €100,000 under the European Deposit Protection Scheme.