Tag: paylater

Revolut Pay Later offers fee-free 45 days for Black Friday…Irish credit expert explains why ‘Pay Later’ is being used this season by savvy shoppers as a money management tool

This season is when many of us get ready for big purchases and have to dip into savings or complex credit options to make ends meet. However, some of the savvier consumers are using instalments payment products for Black Friday to make use of the cost-effective time to make a purchase.

Revolut Pay Later, designed to focus on responsible credit and affordability, is offering a 45 day fee-free promotion for new users to cover Black Friday, Christmas and January shopping. New Pay Later users will have their first 45 days free of any fees. That means customers can do their holiday purchases without paying anything on fees or charges. Additionally, every 3rd Pay Later purchase above €30 is fee-free for existing Pay Later customers.

Rob Mooney, Irish credit expert, explains that consumers who use instalments payment products for Black Friday are often the savvier shoppers. He says these products can be used as a tool to manage money more efficiently and avoid unmanageable debt. Especially in the lead up to Christmas, using Pay Later to take advantage of the discounts available on Black Friday and Cyber Monday allows customers to save money by getting discounts online, and spreading the cost over 3 instalments with Pay Later.

Rob explains that Pay Later provides a convenient way for consumers to spread the cost of purchases over several months. Paying by instalment assists consumers’ budgeting without resorting to loans, going overdrawn or putting the expense on credit cards – which all have high, often complex repayment terms, interest rates and penalty fees. Using Pay Later, consumers can also take full advantage of Black Friday – without dipping into savings.

Rob Mooney, Revolut Credit Manager, says, “Pay Later helps me navigate the most cost-effective time to make a purchase, gives me greater financial control and helps me better manage my cash flow. By enabling me to spread the cost of products at more transparent and economical repayment rates – and therefore spend wisely in more calculated ways, I can take advantage of Black Friday for Christmas shopping. For example, I can buy a new TV, and then spread that cost over several months.”

Ways that Pay Later can be used as a money management tool:

 

  • Managing Cash Flow – You can use Pay Later to manage cash flow by controlling the outflow of money. For example, if you’re looking to get yourself a new laptop this Black Friday, but you don’t get paid for another 2 weeks, Pay Later can help manage your cash flow as you can pay back your expenses over time.

 

  • Budgeting – As Pay Later communicates a transparent affordability limit, consumers know how much is available to them so they can plan and budget using this limit. Having visibility of your spending limit means you know exactly what you can spend, you won’t be rejected at point of sale and left disappointed.

 

  • Complementing Your Budget – Large purchases can throw your budget off. Pay Later can help ease this burden by spreading the load of large purchases across several months to avoid dipping into your savings. Further, it lets you hold on to your money for longer (and, in turn, maintain investments and current accounts).

 

  • Spending at the right time – Similarly to ‘large purchases’, there are some items that are cheaper to buy at certain times of the year. For example, Black Friday could be a good time to purchase toys for birthdays over the next year. Using Pay Later can help you navigate the most cost-effective time to make a purchase.

As the number of buy now, pay later companies entering the market continues to grow, consumers will be presented with an ever-increasing array of repayment options. Those who choose a robust and responsible product that provides an affordable credit limit rather than granting credit on a purchase-by-purchase basis will be better set for financial success. While some providers may be tied into specific merchant partnerships, those which use pre-approved credit limits (like Revolut Pay Later) give consumers more spend management options.

Revolut Pay Later checks customer affordability by linking to customers’ existing bank accounts through Open Banking. Revolut will assess customer suitability and affordability for ‘Pay Later’ through an underwriting process. The current maximum credit limit is €499, but each customer will have their own bespoke limit as decided by Revolut’s credit assessment.

The new product also features built-in safeguards to check that users can afford their Pay Later limit. Unlike other buy now pay later providers, Revolut performs a more robust assessment by pre-approving credit limits before transactions are made, rather than making a decision at point of sale whether to allow consumers to make a Pay Later transaction.

Revolut launches a savvier way to shop with 3% cashback for customers in Ireland

Revolut, the global financial superapp with more than 20 million customers worldwide, and more than two million in Ireland, launches a savvier way to shop where customers earn cashback from their favourite retailers.

The new service, ‘Shops’, lets users search and browse products from more than one thousand leading brands. These include local favourites ranging from Smyths Toys and Woodies to Arnotts and Brown Thomas; international retailers like Ikea, Amazon, JD Sports, Harvey Norman and TK Maxx; and big brands’ online stores, including Nike, Adidas and a range of luxury fashion houses. The full list of more than 1,000 brands is available in the app.

Regardless of the Revolut plan a customer is on, Revolut Shops rewards users with 3% instant cashback for every purchase, as long as they start their shopping journey from the Revolut app and pay with their Revolut card in full.

Cashback is automatically applied at checkout, so customers will never miss the opportunity to save money again. Unlike other products which can take up to 90 days to give cashback to customers, Revolut Shops sends the cashback instantly. Whether it’s your Christmas shopping, a new fridge, trainers, or a birthday gift, customers can see hundreds of retailers they can shop with and get universal 3% cashback on all purchases with these retailers.

There are no restrictions on getting cashback from purchasing products in a sale, meaning Revolut Shops offers cashback on top of any other savings – including promo codes and sale discounts.

Christopher Guttridge, General Manager of Lifestyle Products at Revolut, said: “We’re delighted to add Shops to our superapp, giving over two million Revolut customers in Ireland the opportunity to get more of what they love.

We’re proud to offer instant cashback, unlike other providers which can take up to three months. As the cost of living rises, we are delivering ongoing product innovations aimed at meeting our customers’ everyday financial needs and aspirations, whilst giving them more financial control. Shops helps our customers get the most out of every penny with cashback rewards, or helps them spread the cost of purchases for more expensive periods of the year, such as the Christmas holidays.”

In Shops, users also have an option to split their payment using ‘Pay Later’, the first pay later product in Ireland that uses an approved credit limit, designed to focus on affordability. Pay Later is a way to purchase product(s) in which the customer takes possession of the merchandise on payment of a first instalment and completes the payment by paying two further instalments. Qualified customers can use Pay Later for purchases up to a maximum of €499, with any of their Revolut cards, including when paying with a Revolut Disposable Virtual Card, which provides an extra layer of security for online transactions.

Customers making a purchase on Revolut Shops using Pay Later can use the payment method, but will not get 3% cashback. If a customer would like to repay the instalments early, there are no additional fees to do so.

To start shopping, existing customers can open Shops in the Revolut app. New customers can first download the Revolut app on their smartphones on Google Play or Apple Store and sign up to immediately access Revolut Shops.

Revolut starts rollout of responsible Pay Later instalments product beginning with Ireland

Revolut, the global financial superapp with more than 18 million customers worldwide, is rolling out its responsible pay later product, ‘Pay Later’ in Europe as it continues to expand its suite of products to help people get more from their money. Revolut Pay Later is the first pay later product in Ireland that uses an approved credit limit, designed to focus on affordability. Revolut puts the customer in control of when they want to use Pay Later for rather than being restricted to certain merchant partnerships.

Beginning this week, some Revolut customers in Ireland will be eligible for early access to Pay Later, which will gradually roll out to all users in Ireland – where 1.9m adults have a Revolut account. Pending the sign-ups for Pay Later, Revolut will look to offer the product in additional markets from the end of 2022 and beyond, with Poland and Romania to be the next markets gaining access to the product later this year.

Qualified customers can use Pay Later for purchases up to a maximum of €499, with any of their Revolut cards, including when paying with a Revolut Disposable Virtual Card which provides an extra layer of security for online transactions.

Customers can spread the cost of a purchase across three monthly instalments with the first instalment paid upfront by the customer at the time of purchase followed by two monthly instalments. The fee of 1.65% per purchase is repaid as part of the final two instalments. Fully integrated within the Revolut app, once approved, customers can activate Pay Later on-the-go with one tap in their Revolut app. Customers can view their Pay Later balance in the Cards section and in the Pay Later hub. If a customer would like to repay the instalments early, there are no additional fees to do so.

Whether it’s a new washing machine, hotel booking, or a birthday gift, customers can use Pay Later at any merchant that accepts Revolut online or in store. Unlike other pay later products, merchants do not sign up to Revolut Pay Later, and Revolut does not charge them for Pay Later transactions.

Revolut checks customer affordability by linking to customers’ existing bank accounts through Open Banking. Revolut will assess customer suitability and affordability for ‘Pay Later’ through an underwriting process. The current maximum credit limit is €499, but each customer will have their own bespoke limit as decided by Revolut’s credit assessment.

The new product also features built-in safeguards to check that users can afford their Pay Later limit. Unlike other pay later providers, Revolut is able to offer a more robust assessment as it approves the credit limit before the transaction rather than offering an instalments payment method at the point of sale.

Pay Later is another tool to help customers manage their spending all from one app. The Buy Now Pay Later market in Europe is set to grow to £680bn over the next five years.  Revolut’s ‘Pay Later’ offering meets the growing consumer demand for this personal finance tool, while offering it in a responsible way, with a heavy emphasis on customer affordability and suitability. Pay Later joins the suite of innovative products Revolut will be delivering to solve for all of its customers’ credit needs.

Joe Heneghan, CEO Revolut Europe, commented: “Pay Later is an exciting and fast-growing area of personal finance and consumer spending, and we are excited to add Revolut ‘Pay Later’ to our financial superapp. 

“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.”