Revolut inks deal with Mastercard, plans to launch prepaid cards in the US this year

Revoult Ltd, a digital banking app based in the UK, will begin issuing prepaid cards stateside later this year after striking a deal with credit card giant Mastercard Incorporated (NYSE:MA).

The deal gives the rapidly-growing fintech access to Mastercard’s networks, meaning Revoult cards will be accepted by merchants in the 210 countries where Mastercard operates, according to a report from Reuters. 

Mastercard has been involved with Revoult since its inception in 2015. Shares of the credit card company dipped 0.6% Tuesday to $272.51.

“As a launch partner of Revolut, Mastercard has been an important contributor to our success, and today’s agreement will enable us to meet our ambitious goal of offering innovative financial and payment solutions to people all over the world.” Revoult CEO Nik Storonsky said in a joint statement Tuesday. “Launching in the U.S. will be a huge milestone for us, and we are delighted Mastercard will be our go-to-market partner.”

The move comes on the heels of a deal between Revoult and Visa Inc (NYSE:V), which saw the Mastercard competitor bring in the fintech as part of its expansion plans. Together, the deals are part of Revoult’s plan to get an edge on traditional banks. 

“We’re going to ensure our product is better value for customers,” Storonsky said in an interview with Reuters. “Most U.S. banks charge $10 a month for an account and $10-$15 for local transfers and we’ll be offering both for free.”

The company said it plans to hire 3,500 staff over the next year as it enters North America and Asia, Reuters reported, which would bring its total employees to about 5,000.

Revoult bills itself as a company for travelers, allowing users to transfer money in 30 currencies and burn through up to $300 in ATM fees per month. 

Contact Andrew Kessel at [email protected] 

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Story by ProactiveInvestors