Revolut launches responsible Pay Later product in Ireland
By Leandra Monteiro
Revolut, the global financial company, has launched its responsible pay later product, ‘Pay Later’ in Ireland, where 1.9 million adults have a Revolut account.
The rollout of Pay Later commenced at the end of June 2022, with a select group of customers, and over 1,000 have already purchased products and services using the Revolut instalments product.
Revolut Pay Later is the first pay later product in Ireland that uses an approved credit limit, designed to focus on affordability. Revolut puts the customer in control of when they want to use Pay Later rather than being restricted to certain merchant partnerships.
Qualified customers can use Pay Later for purchases up to a maximum of €499, with any of their Revolut cards, including when paying with a Revolut Disposable Virtual Card, which provides an extra layer of security for online transactions.
The fee of 1.65% per purchase is repaid as part of the final two instalments. Fully integrated within the Revolut app, once approved, customers can activate Pay Later on-the-go with one tap in their app. Customers can view their Pay Later balance in the Cards section and in the Pay Later hub. If a customer would like to repay the instalments early, there are no additional fees to do so.
Revolut checks customer affordability by linking to customers’ existing bank accounts through Open Banking. It will assess customer suitability and affordability for ‘Pay Later’ through an underwriting process. The current maximum credit limit is €499, but each customer will have their own bespoke limit as decided by the company’s credit assessment.
The new product also features built-in safeguards to check that users can afford their Pay Later limit. Unlike other pay later providers, Revolut is able to offer a more robust assessment as it approves the credit limit before the transaction rather than offering an instalments payment method at the point of sale.
Pay Later is another tool to help customers manage their spending all from one app. Revolut’s ‘Pay Later’ offering meets the growing consumer demand for this personal finance tool, while offering it in a responsible way, with a heavy emphasis on customer affordability and suitability. Pay Later joins the suite of innovative products Revolut will be delivering to solve for all of its customers’ credit needs.
Joe Heneghan, CEO Revolut Europe, commented, “We’re delighted to add Revolut ‘Pay Later’ to our financial superapp to give our customers more control and flexibility over their personal finances, in a responsible way, by enabling them to spread the cost of purchases over three instalments.
“From assisting budgeting, to managing cash flow, we’ve had great feedback and stories from our customers who have used Pay Later as part of the early rollout, and we look forward to hearing more.”
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