Revolut raises account limits amid growing investor demand

SINGAPORE – Users of fintech company Revolut can now hold more funds in their e-wallets and spend more in a year, as the firm responds to increased demand from travellers and customers who are investing through the app.

Users can now hold up to $20,000 in their e-wallets at any point, an increase from $5,000 before. They can spend a maximum of $100,000 in a year, up from $30,000 previously, said the company on June 18. It had sent e-mails to customers notifying them of the changes earlier in the month.

Revolut Singapore chief executive Raymond Ng told The Straits Times that customer sign-ups have increased by about two times each year compared with the previous year since the firm launched here in 2019.

Asked how many users were hitting the previous caps, Mr Ng said he could not disclose exact numbers, but noted that a significant number of users had hit both the daily limit cap and yearly spending cap. These include travellers who shop for luxury items overseas and customers paying for their children’s tuition fees abroad.

“With the cap increases, we expect payment volumes in-app to increase by at least two to three times.”

In line with the raised limits, the fintech firm has also introduced additional security controls. These include a 12-hour cooling off period when a login to a new device is detected before users can perform high-risk activities such as adding a new payee or increasing the default transaction limit.

There is also additional confirmation and a risk warning before high-risk activities are performed, as well as a limit of one saved card and one linked bank account for top-ups, among other measures.

The changes come after the Monetary Authority of Singapore raised the caps on e-wallets in December 2023, with rival fintech player YouTrip increasing its limits the following month.

Wise, which also operates a multi-currency e-wallet, told ST previously that it is “working on implementing the changes”.

London-based Revolut has seen a growing number of sophisticated investors using its app in Singapore.

Mr Ng said: “Our app is a one-stop shop. If you have to go into different apps for different things, it’s not very efficient for the sophisticated user. This is one segment that’s growing very fast because they are using us in that way.”

Revolut allows users to trade stocks and exchange-traded funds – users can buy fractional shares starting at US$1 – as well as commodities and crypto.

On May 29, the company launched Flexible Accounts, its first interest-bearing product. Top-ups are invested in US dollar-denominated money market funds managed by global asset manager Fidelity International. The product, which has already seen US$1.7 million (S$2.3 million) in account balances, gives investors up to 5.21 per cent in annual percentage yield.

Customers will soon also be able to access a robo-advisory solution, which is in the pipeline, added Mr Ng.

“As a financial super app, our aspiration is to provide many financial services. Whatever you see in the market that is relevant, we will provide to customers,” he said.

Besides investments, Revolut offers payments and remittance services. Its products include a flagship multi-currency account, a debit card and single-use virtual cards.

It has also launched services in a new currency, the Indonesian rupiah, bringing the total number of currencies users can exchange and store in the app to 34.

Asked about the timing of raising Revolut’s limits, he said: “We wanted to ensure that we are comprehensive and thorough in meeting regulatory requirements as well as customer needs, given that we have several different products.

“We also wanted to time it together with the launch of our latest product, Flexible Accounts, and the June holidays, which see higher travel demand.”

Citing customer feedback that the previous caps were limiting their transactions, Mr Ng said: “The cap increase solves a big part of their challenge because now, they can do much more.”

Revolut user Andre Ong, who is in his late 20s and works in professional services, uses the app about four to five times a year when he travels. He usually converts Singapore dollars to his destinations’ currencies – mainly yen, euros and US dollars – right before each trip.

“For specific currencies, like the yen recently, where the exchange rate is very favourable, I would convert some in advance and hold it in my Revolut wallet for use in the future,” he said.

He uses Revolut to purchase bigger-ticket items that are cheaper overseas, often on behalf of friends and family. These include electronics and luxury clothes from countries such as France and Italy.

“The $30,000 annual cap sometimes limited my purchases. With the increase in limits, I am now able to spend overseas freely without worrying about hitting the annual limit,” said Mr Ong.

Besides serving individuals, Revolut also plans to launch Revolut Business in the next few months. It will start by catering to small- and medium-sized enterprises – including foreign companies that are using the city as a base for regional expansion – and then larger companies too.

Mr Ng said: “We want to be their go-to app for all their daily usage, just like for our retail business, in Singapore and also for their overseas needs when they expand into South-east Asia or Asia-Pacific.”