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Revolut Business: Saving money for Irish SMEs?

With costs on the rise, more Irish small and medium companies are looking at where they can cut their costs and save time.  Is a Revolut Business account the answer?

The pandemic changed the way business approach their online offering and Revolut has become a default payment type for many Irish businesses.  Statistics show that Revolut is now used as a method of payment by 71.8% of 20-25-year-old online shoppers.

 

So what is Revolut and how does it affect how you do business?

Revolut is a financial technology company that offers customers a prepaid debit card for chip, contactless and online payments as well as ATM withdrawals at home or abroad.

 

Online payments for services as well as goods rose sharply during lockdowns and shows no sign of abating anytime soon.

 

Like all other types of payment preferences, it has many advantages and some disadvantages for business owners but it is still a newish concept for many Irish businesses.

 

In terms of Irish businesses, more and more are seeing employees request to have their salaries paid into a Revolut account as all Revolut accounts, private and business, come with BIC and IBAN numbers.

 

However, because the company has no physical presence such as bank branches, you obviously can’t make cash deposits or log cheques at your local branch which a high number of Irish businesses still need to do on a daily basis.

 

While Revolut looks like a digital bank from the outside that is not quite the case just yet. Revolut was granted a full banking licence by the European Central Bank (ECB) in December 2021. Current Irish Revolut customers are customers of Revolut Payments UAB and the intention is to over these customers the option to switch to Revolut Bank UAB in the first quarter of 2022. Until the banking licence is fully rolled out within Ireland customers money is still ring-fenced with large global banks in the EEA.

 

Revolut’s app has an appeal to businesses because most traditional banks’ digital offerings are either limited or not fit for purpose for smaller businesses.

 

Another appealing point for businesses is Revolut’s foreign exchange features. You can exchange money in 30+ foreign currencies as well as Bitcoin and Ethereum and typically at more favourable rates than the traditional financial institutions.

 

So what are the costs then?

Revolut offers four types of business plans – Free, Grow, Scale and Enterprise. As Enterprise is a customisable plan, we have analysed the main features of the other three plans below.

 

Plan

Free

Grow (Most Popular)

Scale

Cost

€0/month

€25/month

€100/month

European Consumer Cards

1% +€0.20

1% +€0.20

1% +€0.20

All other Cards

2.8% + €0.20

2.8% + €0.20

2.8% + €0.20

Revolut Pay

1% + €0.20

1% + €0.20

1% + €0.20

Free metal cards

£49/extra card

0

1

2

Free Classic Cards

Unlimited

Unlimited

Unlimited

Free international payments

€3/extra payment

0

10

50

Free local payments

€0.02/ extra payment

5

100

1,000

FX at the interbank rate

0.4% mark up/extra transaction

€0

€10K

€50K

Priority 24/7 support

No

Yes

Yes

Accept payments on your website

Yes

Yes

Yes

Request payments

Yes

Yes

Yes

 

So what are the disadvantages of a business Revolut account?

  • It doesn’t accept cash or cheques deposits
  • Daily withdrawal limit of €3k
  • Monthly withdrawal limit of €100k
  • There are transfer limits associated with British Pounds
  • You don’t earn interest on money deposited – though given the current low, and even negative deposit interest rates with traditional banks, this is not a key issue
  • Customer accounts can be frozen temporarily due to security reasons

 

So what are the advantages of a business Revolut account?

  • You can top-up in and hold several currencies
  • Integration with accounting systems like Xero allows your bookkeeper to reconcile Revolut transactions from a bank feed
  • An array of expanding extra features (e.g. crypto trading, disposable virtual cards)
  • The option to create Team cards for specific employees gives them the ability to spend company funds in a controlled manner through spending limits
  • Premium subscription options with handy perks (e.g. travel insurance, rewards)
  • Fast and free transfers to over 33 countries
  • Their fees are transparent so you know it will cost more to transfer at the weekends than during the week
  • Instant processing of all transfers
  • You can set up recurring payments and direct debit payments
  • The application process is simple
  • There is a convenient mobile app
  • If your card is stolen or lost it can be frozen from the app

 

As a digital accounting and consulting firm, we understand the importance of going digital with your business.

 

To discuss digital solutions for your business give us a call today.

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