Bitcoin exchange Bitstamp has been appointed as a new partner for European digital banking outfit Revolut to facilitate cryptocurrency purchases for its more than half a million users. Bitstamp won the role of cryptocurrencies supplier over other digital exchanges thanks to its ability to tailor its model to suit Revolut.
The new partnership merges the core capabilities of a leading digital exchange with those of a payment service provider and adds the regulatory framework of an authorized European bank.
In partnering with Bitstamp, Revolut claims to have become the first company to allow users conduct crypto transactions in-app, alongside 25 global fiat currencies. Revolut customers can now spend supported currencies using Visa, Mastercard credit or debit cards to purchase bitcoin (BTC), litecoin (LTC) and ethereum (ETH).
As it scales, Revolut has previously announced plans to work with crypto providers to roll out the services that a traditional bank wouldn’t typically provide to customers.
How the FX Industry Can Benefit from Outsourced ITGo to article >>
Revolut, which allows people to transfer money cross-border and spend abroad in 120 currencies with no fees, promises to offer competitive rates on crypto transactions, charging only a flat, up-front 1.5 percent without other hidden fees. This is compared with higher fees on other platforms that the company claims it can add up to 5 to 9 percent of the transaction value.
Additionally, the partnership will reportedly allow Revolut customers to enjoy faster and more convenient transactions while shifting between fiat and digital currencies. For example, if a customer doesn’t hold fiat currency in his Revolut account, the mobile-banking provider will convert his crypto holdings within the app when using his card with the best possible rate.
Revolut’s users, about half of them are based in the UK and another half in Europe, can also save extra foreign exchange fees as the company will allow them to buy through all of its base currencies.
Bitstamp CEO Nejc Kodrič commented: “Our partnership will enable Revolut users to have the same level of functionality of BTC, LTC, ETH that they have with any of their other currencies. The increase in liquidity, speed and ease of use unlocked by this partnership are significant steps toward wider adoption of cryptocurrency as the offering becomes more mainstream.”
Lewis Tuff, Revolut’s Chief Platform Engineer, added:“This is something that our customers have wanted for a long time. We think Bitstamp is the perfect partner as we provide Revolut customers with the ability to convert fiat money to cryptocurrencies, making the process much faster and much more accessible.”