The new Revolut instalment service allows customers to spread the cost of purchases into three instalments, as well as make early repayments free of charge. Pay Later works online and in stationary stores. Thus, the British fintech company enters the growing market of deferred payments, where the competition is already quite big.
Revolut enters the market with a new loan product that will offer 1.7 million adult users in Poland.
Pay Later from Revolut at a glance:
- purchases up to a maximum amount of PLN 5,000
- shopping at any store
- paid for with a Revolut card (physical or virtual with a variable number)
- the possibility of dividing the purchase into three monthly instalments
- early repayment possible
- the first instalment is prepaid at the time of payment, and subsequent instalments in the second and third month
- A 2.99% fee is added to the second and third instalments. transaction
Revolut does not provide the BNPL service (buy now, pay later) above the amount of 5,000 PLN, but each user will receive an individual limit, based on the assessment of creditworthiness. Especially in the case of customers who have been using the application for a long time, the transaction history can be used to build an appropriate profile of the borrower.
Revolut also emphasises that it does not have to sign a contract with the service provider. The store also does not incur costs when buyers use the Revolut service.
Other firms already operate on the deferred payments market
Allegro Pay already has over a million users. Klarnie is doing slightly worse on the global market. A startup founded by a Swede of Polish origin has recently lost its value – as much as 85 percent.
The decline in value was caused not only by the economic slowdown, but also the general decline in user sentiment in the context of deferred payments. In the US market, Klarna is also struggling with competition from Apple and Afterpay.