Fintech companies such as Revolut and Luno are experiencing a dramatic surge in demand from customers who are rushing to invest in Bitcoin (BTC) and other digital currencies amid record-breaking and unprecedented cryptocurrency price increases.
Fintech app providers that offer crypto trading, like Revolut, eToro, and Luno, are witnessing a sharp rise in demand for virtual currencies on their platforms, following a rise in the Bitcoin and Ethereum (ETH) price (along with other altcoins).
Revolut’s management revealed that they’ve been able to attract 300,000 new digital currency enthusiasts during the past month.
In statements shared with Business Insider, Luno’s CEO Marcus Swanepoel noted:
“A number of forward-thinking Fintech companies have already introduced crypto offerings over the past 2 years as an addition to their existing features.”
Online trading and banking app providers that also provide digital asset trading options have been able to take advantage of the increased interest in cryptocurrencies.
Money management app Revolut, which provides crypto trading as part of its wide range of services, stated that it has seen around 300,000 new digital asset customers during the past 30 days. These new traders are trying to take advantage of the increase in the Bitcoin (BTC) price which is currently trading at just under $37,000 (another all-time high). Around 100,000 of these new signups have come since the start of this year, Revolut claims.
As reported recently, digital bank Revolut’s app was downloaded 5.8 million times in 2020, which is more than Monzo and Starling Bank combined.
Revolut’s relatively high number of downloads (5.8 million) may be attributed to its steady global expansion efforts, with its app now available in 36 different countries. Meanwhile UK-based digital bank Monzo has only expanded its business operations to the US, and Starling is focused on establishing operations across Europe this year.
As covered, digital banks and Fintech challengers are now under a lot of pressure to demonstrate that they can generate profits, because investors are expecting returns.
Although these new challengers have struggled to achieve profitability, the demand for digital banking services and online platforms has increased during the COVID-19 pandemic. Fintech Unicorn Revolut’s customers spent 2.6x more on online e-commerce than on in-store purchases.