Is Revolut Safe?

Whether it's their business account for freelancers or their personal accounts, discover whether Revolut is a safe financial platform for you to use.

Updated: December 30, 2023
Matt Crabtree

Written By

Matt Crabtree

 

If you've ever used any kind of financial service or platform on your mobile phone or computer, you'll understand how much safety is a concern — especially if you're topping your account up with significant sums of money.

Over the last decade, there's been a notable shift from traditional banking methods towards digital alternatives, whether that's because they're cheaper for international transactions or they're in-app services and tools and so effective.

One of the most popular services in this field, among others like Starling or Monzo, is Revolut, which is a Lithuanian-based financial technology company (Revolut Bank UAB).

Still, despite its popularity, there are still a few safety aspects that are worth considering, so throughout this article, we'll be walking through some of Revolut's features, security measures, and support networks to get a clearer understanding of whether it's a safe platform for managing your finances.

What Is Revolut?

A Brief Overview

Revolut, founded in 2015, has transformed the way individuals handle their money.

It operates as a digital bank that provides a range of financial services, including currency exchange, international transfers, and even cryptocurrency transactions. Users are drawn to its user-friendly app, low-cost transactions, and the promise of a borderless financial experience.

Encryption and Data Protection

One of the cornerstones of Revolut's safety measures is robust encryption. All data transmitted between the Revolut app and its servers is encrypted using industry-standard protocols. This ensures that sensitive information, such as personal details and transaction data, remains secure and private.

Cryptocurrency Transactions

Integration and Risks

Generally speaking, it's Revolut's business and personal accounts that seem to garner the most attention, but it's worth mentioning that they've also delved into cryptocurrency quite a lot to try and get their users more interested in digital assets.

Now, in terms of the risks attached to this, it's good to know that it's perfectly safe for you to buy, sell, and hold cryptocurrencies within the app — but don't let that cover up some of the more inherent risks involved with the crypto market in the first place.

Whether it's random meme/altcoins that pop up on a daily basis that are doomed to be a scam or generally how volatile the market is, cryptocurrency isn't exactly known for being the safest financial asset to get involved with.

Fortunately, though, Revolut definitely takes a fairly proactive approach to safeguarding your cryptocurrency, given that the majority of it is stored offline, in cold storage. In essence, this simply means that your exposure to any kind of online threats or hacking attempts is massively reduced.

Aside from this, you've always got the option of turning extra security features on for any assets you have in your hot wallet via the website or app — 2FA for cryptocurrency transactions, for instance, which would definitely be advised regardless of how much money you have in your wallet.

Revolut's Services

Moving forward, let's talk a little bit about what services you can expect when you start using Revolut (LTD) because the platform is actually not as conventional as traditional banks.

Technically speaking, Revolut is legally barred from labelling itself as a type of bank or neobank, so it's worth getting out of the way that you wouldn't be able to use it as a primary bank account or make bank transfers to other bank accounts from the platform.

At this point, you might question, “Is my money safe on this platform?” given you're entrusting a service with no banking licence in the United Kingdom, a presumably large amount of your cash, but that's just because they're based in Lithuania.

Though your funds won't be protected by the Financial Services Compensation Scheme (FSCS) in the same way you might expect from a more established financial platform, Revolut is still authorised to follow the UK Electronic Money Institution.

As such, you don't need to have any qualms regarding the amount of money you're topping your Revolut current account up with and whether it's recoverable in the case of bankruptcy — it's still regulated.

Aside from this, Revolut claims to employ their own type of strategy they refer to as ‘Safeguarding', which essentially states that in the event any kind of ‘e-money' institution (i.e. Revolut) fails, they will return your funds to you from your previously ‘dedicated safeguard account', guaranteeing safe retrieval of your funds.

As a matter of fact, the fact that a Revolut card doesn't operate like a traditional debit card makes it slightly unique: it's able to operate as a much more dynamic financial platform geared towards a particular demographic rather than something more generic and works for both personal and business customers.

So, let's discuss how a Revolut account is possibly more versatile as a financial technology company.

Revolut for Personal Users

Whether you download the Revolut app or visit their website, one of the first things you'll be met with is the option to select either a personal or business (freelancers and self-employed users, for instance) account.

For people who doubt they will be spending money on any business transactions (or would benefit from the business-related benefits) and would prefer something for online shopping, you'd naturally be better off with their personal account.

Although the business account has a lot more additional features, given the scale of customer needs to attend to, the personal account is still full of great financial services.

For instance, they have a currency exchange feature on their platform, which gives you fairly competitive rates for converting money, so financial platforms like Monzo and Revolut tend to be pretty popular options for anyone who might be travelling and has to deal with foreign currency regularly or make international money transfers.

Of course, the added convenience of using the platform for online payments, the budgeting tools, and getting a sleek Revolut card for in-person payments adds to the appeal, too.

Revolut for Businesses

As hinted on, Revolut's business accounts for freelancers and sole proprietors are generally the more favourable option out of these and the personal accounts, and that's because of the range of features you're getting — not to mention that there are options (albeit with slightly less versatility as the paid options) without any monthly fee.

Once you sign up for one of their specialised business accounts, you'll be able to manage all of your expenses in particular areas that you've categorised — utility bills, rent, groceries, etc. — send money abroad, and also receive plenty of different financial insights for your account (all in real-time).

Revolut Trading Ltd

Although we've mentioned the role that cryptocurrency trading has on Revolut's platform, further financial assets are available for you to trade — stocks, for instance.

In terms of safety, it's worth reiterating all of the same concerns there are for crypto, as the stock market can obviously be equally as unforgiving. Any potential dreams of finding a serious and sustained money stream from stock market trading — on any financial platform, not just Revolut — must understand that a great deal of capital and years of experience are imperative.

Though it can certainly be tempting to get involved with the vast range of features available with your Revolut account, it's advised you only commit to investing a relatively insignificant amount of money until you've gained enough experience trading successfully.

Ultimately, despite all of the safety concerns regarding Revolut's banking licence, perhaps the least safe quality of this financial platform is the potential to lose a meaningful amount of money in the stock or crypto market that's accessible via the app or website.

Having said that, Revolut doesn't leave you entirely in the dark if you're an inexperienced retail trader who doesn't understand how to find a profitable trading opportunity — there is a vast amount of content available on their website, from quizzes to in-app courses, that are there to boost your knowledge.

Regulatory Oversight

As touched on, there is generally a degree of scepticism over whether Revolut is legit or not, given that it's not authorised and regulated by the Financial Conduct Authority (FCA) like a traditional bank, but that doesn't mean it's not still under regulatory oversight.

Revolut adheres to strict standards, providing users with confidence in the security and legality of their financial transactions. Having said that, this slightly unconventional approach to financial services might not be for everyone, so make sure you feel totally comfortable before using the platform.

Ultimately, though, Revolut's service is a wholly positive one despite a few safety concerns, and they're generally one of the most progressive financial platforms whose main priority is to make financial interactions easier.

Revolut Accounts and Cards

Naturally, one of the most convenient usages of any financial tool is the ability to carry a card with you to use at any given moment, so it's worth clarifying how their payment scale works:

First is their “Grow” account, which comes with one card and is priced at £22.80 per month. For £90 per month is their “Scale” account, where you'll be given two complimentary Revolut cards, and finally, the “Enterprise” account, which operates on a more custom model.

Customer Support

A vital component of any financial service's reliability is the efficiency of its customer support network.

Revolut recognises the significance of timely assistance and has established a customer support system that aims to address user queries and concerns promptly.

In-App Support

When there's so much risk involved when using a financial platform, whether it's for trading or paying for goods, it's relieving to know that you've got a direct line to get in touch with a keen support network should you have any kind of issue.

If, for example, you made an incorrect transaction using your Revolut account, you'd like to be able to have the chance to get help — preferably on a 24-7 basis. Naturally, financial matters certainly don't adhere to a 9-to-5 schedule, especially with constantly active markets such as cryptocurrency, which is exactly why Revolut provides support around the clock.

So, whether it's for resolving a simple transaction issue, clearing up any account details, or even addressing a security concern you may have, you know you've got an outlet to rely on.

Continuous Improvement

Naturally, it's important that any company shows some kind of plan or commitment to generally improving its support network, so it's important to note that Revolut generally seems to show a track record of building its support infrastructure to better serve its growing user base — from developing optimisations for the app to becoming easier to reach.

Final Thoughts

To round the article off, it's definitely understandable to have some concerns if you're unfamiliar with using a financial platform such as Revolut before, and the fact that there has been some controversy over the platform's lack of banking licence doesn't help either.

Having said that, our final verdict is that there's fairly minimal reason to have qualms with Revolut or the way that they operate in general. Whether it's their business or personal account services, you're gaining access to a platform with multiple free options in terms of membership as well as a litany of quality financial tools.

Related Guides:

Is Revolut Safe: FAQs

Can I Trust Revolut With International Transactions?

How Responsive Is Revolut to User Concerns and Challenges?

Are Cryptocurrency Transactions on Revolut Secure?

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