London-based neobank Revolut has launched in Australia today after the ASIC allowed the bank to use its European electronic money licence to support itself in Australia.
The neobank is valued at US$1.7 billion and is one of the fastest growing companies in Europe boasting more than 4 million customers worldwide.
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The company has raised has raised $336 million in equity funding from leading venture capital firms.
Its headquarters will be in Melbourne where the neobank is planning to hire 30 staff.
Revolut was founded in July 2015 by Vlad Yatsenko, CTO and Nikolay Storonsky, CEO.
Will Mahon-Heap, expansion manager for the APAC at Revolut told the AFR the company is focusing on the core product at the moment and will eventually apply for its Australian banking licence.
The neobank is opening its beta version of the app to the Australian public today, starting with a gradual roll-out to the 20,000 Australians on its wait list.
According to the AFR, Revolut is in discussions with Apple Pay to have the feature for its Australian users. At the moment it is only available in its 30 European markets.
Revolut has a three-tier subscription feature for its users the first being a standard subscription for free, a premium subscription at $11 a month and a ‘metal’ subscription for $20 a month.
Some of the perks of the paid subscriptions include global express delivery, a bank card, priority customer support, LoungeKey pass access and no fee ATM withdrawals up to $1,050 a month.
The entry of Revolut into the Australia market shows how strong and competitive the neobank landscape is becoming especially with younger generations.
Another neobank, Up has just hit 100,000 customers in the eight months it has been in the market with millennials and Gen Z making up 85 per cent of its customer base.