Neobank/digital bank Revolut will roll out its buy now – pay later (BNPL) product starting with Ireland. Revolut is entering a rather crowded market but is providing a service that has dramatically increased in popularity in recent years.
According to Revolut Ireland as of last Friday, users will be able to activate pay later to “pay in three” using their Revolut card. While there is no interest paid users must cover a 1.65% charge on each purchase. Users may access credit under Pay Later of up to €499.
Following Ireland, the service will be rolled out into other countries starting with Poland, and Romania later this year. In Ireland, Revolut has almost 2 million accounts.
Revolut Europe chief executive Joe Heneghan was quoted in the Irish Times noting that unlike other BNPL providers there is no need for a merchant to approve the lender. This is similar to what Apple is providing in their first iteration of providing BNPL credit.
Heneghan stated:
“Revolut Pay Later gives our customers more control and flexibility over their personal finances, in a responsible way, by enabling them to spread the cost of purchases over three instalments. This encourages people to pay within two months, rather than calling on overdrafts and credit cards which don’t carry the same emphasis on quickly paying back the amount borrowed.”
This past May, the Cetnral Bank of Ireland announced new consumer protections in regards to credit providers including BNPL services. The Bank explained that it was extending its consumer protection framework to these firms ensuring consumers receive the same protections they require of other financial service providers.