Revolut is great. Especially for travel money. Revolut is also a good way to send money but there are reasons not to use it. Indeed Revolut is not the best way to send money abroad for 3 reasons: technical, financial and regulatory. Here are the explanations why.
1/ The technical reason why you should choose another service than Revolut to send money abroad
The first thing to know is that the definition itself for Revolut services is travel money. Travel money is a service you use when you go on holidays in a country where the currency is different than your home country. Sometimes you travel for longer than 1 week and it’s useful to have multiple currencies available. With travel money you are able to exchange the currencies of your debit/credit card so that you avoid some fees. Anyway the suppliers you pay to still have to pay the 3% fees that they usually pay with other payment cards. So the result is having traveling money onboard is simple and is useful. However transferring money abroad is not the main use of Revolut as there are fees as soon as you spend more than a certain amount. The risk is that you are going to think that you can transfer 10’000 euros but at the end you are going to be screwed up because you end up paying even more than by using your bank.
2/ The financial reason why you should not choose Revolut
As I was explaining the cost of ATM withdrawal, payments and money transfers with Revolut is free at the beginning. I mean it’s free for small amounts. It makes us believe that it’s free. At the end it’s not and we have no idea how much it costs because there is no transparency about costs on their app.
Revolut is great but I warned you. Don’t use it for money transfers without mastering the cost first. Try to always make a money transfer comparison first.
3/ The compliance reason
Oops… Even though Revolut is great, it was not licensed for all cards they sent to users… In November 2016 they deactivate all cards whose beneficiaries were outside Europe, and also completely stopped having new customers. The company claimed to be able to get licensed in a week. The question here is about another matter. If the service is not licensed, what are the consequences? The consequences are that their founders might be trialed. Their company might die. Their users might be stolen without regulatory guarantee behind…
That’s a good challenge for them but anyway their service is liked by users. It’s the same as Uber. If people like what you do, you live. Otherwise you die.
For Revolut the chance for them is that for the moment people like it especially because they think it’s free. Maybe it would change in the future but anyway this is a simple and pleasant tool that we can both keep using and keep mastering costs. Hope it helps.