Fintech unicorn Revolut is now allowing its Premium and Metal customers to purchase and sell gold from directly within its app. Gold has recently risen in price as investors have sought safe havens from the COVID-19 driven market crash.
The app’s users can get exposure to the gold bullion by getting their Revolut accounts credited with the corresponding value, which is reportedly backed by actual, physical gold that the Fintech firm purchases and holds with a business partner.
Users are able to hold gold and exchange it for digital money or cryptocurrencies. Users are also able to set up an auto-exchange option, which allows them to buy and sell gold when the asset’s price reaches their specified targets.
While gold may not be used to make direct payments, if customers try to conduct a payment using their Revolut card and they only have gold in their account, then the company will automatically convert it into fiat currency to settle the transaction.
Revolut’s management cautioned that trading gold can be risky and that the option is not regulated by the UK’s financial regulator, the Financial Conduct Authority (FCA). This means that users are not entitled to protection under the Financial Services Compensation Scheme.
Ivan Chalov, product owner at Revolut, stated:
“Yes, trading gold is risky, but it can also be a rewarding investment. In addition to stocks and crypto, it’s another way to potentially get more from your money.”
Last month, Revolut introduced a new Open Banking feature, which allows users to view their bank accounts from other financial service providers from within the digital bank’s app.
Revolut teamed up with financial API developer TrueLayer to allow all of its retail and business clients to check balances and transactions performed from other traditional banks and neobanks.