Revolut Slashes Crypto Fees by 96% with New App

Revolut, a prominent European fintech company, has made a significant move in the cryptocurrency market by drastically reducing its trading fees. Starting from March 25, the company launched a dedicated crypto app, revolut X, which offers a 96% reduction in fees for its users across the UK and Europe. This new pricing strategy aims to attract more users and increase the volume of crypto transactions on its platform.

Previously, Revolut's global crypto users paid platform fees ranging from 49 to 149 basis points, plus a spread of about 100 basis points. With the new pricing model, Revolut X charges a low 9 basis point fee to price takers and eliminates the spread. This move positions Revolut as one of the most competitive crypto exchanges in terms of fees, potentially disrupting the market and attracting users from other platforms.

Revolut's strategy to reduce fees is part of a broader effort to capture more crypto liquidity and increase the number of active crypto buyers and sellers on its platform. The company has stated that the average active Revolut X customer trades 10 times more than the average active Revolut retail customer. This indicates that the new pricing strategy is likely to drive more trading activity and increase user engagement.

Revolut's move is expected to put pressure on its competitors, particularly Binance, which has a significant presence in Europe. Binance, with over 250 million users worldwide, has a large user base but a smaller number of active users. Revolut's lower fees and better regulatory reputation could make it a more attractive option for European users, potentially leading to a shift in market share.

Revolut's new pricing strategy is also part of its broader financial services aspirations. The company offers a range of financial services, including banking, investing, and payments, and is accumulating licenses in these areas to support its growth. The launch of Revolut X is a strategic move to enhance its crypto offerings and attract more users to its platform.

Revolut's decision to launch a dedicated crypto app and reduce fees is a bold move that could disrupt the crypto market and attract more users to its platform. The company's focus on capturing crypto liquidity and increasing user engagement is likely to drive more trading activity and increase its market share. However, it remains to be seen how competitors will respond to this move and whether Revolut's strategy will be successful in the long run.