Remitly's Remitly One: A Strategic Leap Toward Recurring Revenue and User Retention in Cross-Border Payments

In the rapidly evolving cross-border payments sector, Remitly's launch of Remitly One, a $9.99-per-month subscription service, marks a pivotal shift from its traditional remittance model to a broader financial services ecosystem. This tiered membership platform, introduced in September 2025, is designed to deepen customer relationships, generate recurring revenue, and address the unmet financial needs of underbanked populations—particularly migrants and international workers. By bundling features like “send now, pay later” funding, a multi-currency digital wallet, and credit-building tools, Remitly is positioning itself as a one-stop shop for cross-border financial solutions.

Unlocking Recurring Revenue Through Subscription Economics

The fintech industry has increasingly turned to subscription models to stabilize revenue streams and reduce reliance on transaction-based income. Remitly One's $9.99 monthly fee directly taps into this trend, offering a predictable revenue source while incentivizing users to engage more frequently with the platform. For instance, members gain instant access to Remitly Flex, a “send now, pay later” feature that allows interest-free advances of up to $250, compared to a three-day wait for non-membersRemitly Announces Remitly One, A New All-in-One Financial Membership^[1]. This not only drives transaction volume but also locks users into a recurring payment cycle, enhancing lifetime value.

Data from Remitly's Q2 2025 earnings call reveals the potential of this strategy: the company processed $16.2 billion in send volume during the quarter, a 41% year-over-year increase, while active customers grew to 8 million, up 29%Remitly Q1 2025 presentation: Revenue surges 34%, …^[2]. These metrics suggest that Remitly's user base is already expanding at a rapid pace, and the introduction of a subscription model could further accelerate retention. Analysts note that such features—like cashback incentives (up to $5/month) and a 4% annual reward on wallet balances—create “stickiness” by aligning user behavior with platform usageRemitly debuts tiered membership platform^[3].

Enhancing User Retention Through Value-Driven Features

User retention in fintech hinges on delivering consistent value, and Remitly One's feature set is tailored to address pain points in cross-border finance. The Remitly Wallet, for example, allows users to store money in USD and soon in stablecoins like USDC, while a digital debit card enables global spending without foreign transaction feesRemitly Announces Remitly One, A New All-in-One Financial Membership^[1]. These tools cater to a demographic—international migrants—who often lack access to traditional banking services. By offering a secure, low-cost alternative, Remitly reduces churn and fosters loyalty.

Moreover, the platform's future expansion into credit-building tools—such as a line of credit for U.S. members—positions Remitly to serve a critical need for migrants seeking to establish credit historiesRemitly Announces Remitly One, A New All-in-One Financial Membership^[1]. This aligns with broader industry trends: cross-border payment volumes are projected to grow from $194.6 trillion in 2024 to $320 trillion by 2032, driven by faster payments and AI-driven efficiency2025: Navigating the cross-border payments evolution^[4]. Remitly's ability to bundle financial services into a single, affordable subscription could differentiate it from competitors like Wise and Revolut, which offer similar tools but lack a cohesive ecosystemUnpacking Remitly’s membership service Remitly One^[5].

Financial Performance and Strategic Positioning

Remitly's financials underscore the viability of its new model. In Q1 2025, revenue surged 34% year-over-year to $362 million, with adjusted EBITDA reaching $58.4 million—a 16.2% marginRemitly Q1 2025 presentation: Revenue surges 34%, …^[2]. This momentum continued into Q2 2025, with revenue hitting $411.9 million, another 34% increase. CEO Matt Oppenheimer highlighted Remitly One as a “unique value proposition” during the Q2 earnings call, emphasizing its role in diversifying revenue beyond remittancesUnpacking Remitly’s membership service Remitly One^[5].

The company's forward-looking guidance for 2025 projects annual revenue between $1.574 billion and $1.587 billion, with adjusted EBITDA expected to range from $195 million to $210 millionRemitly Q1 2025 presentation: Revenue surges 34%, …^[2]. These figures suggest that Remitly's subscription-driven strategy is already contributing to profitability, even as it invests in product innovation. The broader rollout of Remitly One to all U.S. customers by year-end 2025 and international expansion in 2026 could further amplify these gainsRemitly Announces Remitly One, A New All-in-One Financial Membership^[1].

Risks and Competitive Dynamics

While Remitly One's potential is compelling, challenges remain. Subscription models require high user satisfaction to sustain retention, and the fintech sector is highly competitive. Major players like Revolut and Wise offer similar features, though none combine them as comprehensively as Remitly OneUnpacking Remitly’s membership service Remitly One^[5]. Additionally, regulatory scrutiny of cross-border financial services could impact expansion plans. However, Remitly's focus on underbanked populations—a segment with limited alternatives—provides a buffer against such risks.

Conclusion: A Strategic Bet on the Future of Cross-Border Finance

Remitly One represents more than a product launch—it's a strategic repositioning of the company as a comprehensive financial services provider. By leveraging a subscription model to generate recurring revenue and embedding value-driven features to enhance retention, Remitly is addressing both the transactional and aspirational needs of its user base. As cross-border payments continue to evolve, the company's ability to innovate within this ecosystem could solidify its leadership in a market poised for explosive growth.