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Woodseal

Revolut and the Underhand payment companies

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After being charged a whopping 3.77% on a pounds to XRP transaction, Of which £69 was a hidden fee. Prior to the transaction it quoted the fee at £6.50. On asking Revolut why the fee, they actually quoted the interbank exchange rate, and the fact they charge 3-5% on the Thai Bakt to Rubble exchange rate. Bewildering. on further conversation with Revolut, i was informed that they charge another 1.5%  to take in account of Volatility, i Thought that XRP was so fast that volatility was not an issue. No transparency with Revolut, i spent half an hour scouring their website for the their "transparent fees". I could not find them. They could have charged me 8% for some weird Omani Rial to Sudanese pound for all i knew. 

This got me thinking,

How are ground breaking technologies like XRP with their high speed, low cost and philanthropic philosophy going to help the un-banked. So a worker in Saudi sends money home via one of the transfer companies and is quoted a small fee for the transaction. Money sent his wife opens her phone app to find the money her husband has sent, now has hidden fees included. (which were not disclosed upfront) reducing the amount sent considerably. Same old story. 

I am most definitely invested to better my own financial situation, but i am also chuffed to think that other peoples life's may also be bettered.

The way companies like Revolut do business worries me.

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Banks (and other intermediaries) will always shave an arbitrary cut off the top -- for one thing, they have to (otherwise, why even bother offering the service?), and for another, they're banks, and that's what banks do.

However, I think two dynamics will serve to gradually minimize (though never eliminate, of course) this FeePalooza:

1- XRP and the various Ripple mechanisms surrounding it makes it possible to cut out some of those intermediaries, and fewer players means fewer (though not necessarily lower) fees
2- And as more institutions get into the game, there will be competitive pressure to actually reduce fees

Right now, early adopter institutions are alone at the buffet table and are gorging themselves, but as more players show up that won't last.

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Thanks for bringing this to the forums attention.  If all here is accurate it definitely undermines the philanthropic potential of XRP.  The market will have to stay vigilant and keep private enterprises focused on remittances responsible for passing savings on to the customer.  Economically, it’s a very myopic approach to keep fees constant and swell profits.  Such a rookie, short-term move.  The provider who’s fees lower relative to xrp’s savings will see network effects and thus much larger profits long-term.  Interesting times ahead.  

Edited by aavkk

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The XRP in Revolut is IOU, so they don't use xRapid. The volatility is probably because they keep a pile of XRP and they have to charge you because the price of XRP fluctuates.

If they were using xRapid, the volatility in the transaction will be minuscule.

 

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4 hours ago, Woodseal said:

After being charged a whopping 3.77% on a pounds to XRP transaction, Of which £69 was a hidden fee. Prior to the transaction it quoted the fee at £6.50. On asking Revolut why the fee, they actually quoted the interbank exchange rate, and the fact they charge 3-5% on the Thai Bakt to Rubble exchange rate. Bewildering. on further conversation with Revolut, i was informed that they charge another 1.5%  to take in account of Volatility, i Thought that XRP was so fast that volatility was not an issue. No transparency with Revolut, i spent half an hour scouring their website for the their "transparent fees". I could not find them. They could have charged me 8% for some weird Omani Rial to Sudanese pound for all i knew. 

This got me thinking,

How are ground breaking technologies like XRP with their high speed, low cost and philanthropic philosophy going to help the un-banked. So a worker in Saudi sends money home via one of the transfer companies and is quoted a small fee for the transaction. Money sent his wife opens her phone app to find the money her husband has sent, now has hidden fees included. (which were not disclosed upfront) reducing the amount sent considerably. Same old story. 

I am most definitely invested to better my own financial situation, but i am also chuffed to think that other peoples life's may also be bettered.

The way companies like Revolut do business worries me.

We need enough competition to level the playing field and force more efficient pricing. If entry costs to get into the business are low, this shouldn't be a problem. Consumers will naturally gravitate to use lower cost services..

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This may be old news, but I saw this on Revolut's website today:

image.thumb.png.d172476d3f7405bad5fe919059fad45e.png

I found myself on their US website today as I'm experiencing more pains with my US bank. So, off I go looking for a replacement bank. Revolut is about all that I can find for fintech in US commercial banking oriented towards an expat in Germany. Any more info about Revolut and XRP? Or better, reviews from current customers?

Edited by Wandering_Dog

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https://news.sky.com/story/british-fintech-unicorn-revolut-wins-banking-licence-11578895
 

Quote

<<<<SKY NEWS>>>>

The British fintech start-up Revolut has secured a European banking licence that will pave the way for it to launch a comprehensive current account and consumer lending operation across the continent from next year.......

 

.......Sky News has learnt that Revolut, which launched three years ago, will announce on Thursday that it has been granted a banking licence exactly a year after it lodged its application.

The licence process, which was undertaken in Lithuania but has been approved by the European Central Bank, will allow the company to passport into the UK during a post-Brexit transition period.

However, insiders said that Revolut also intended to seek a full UK banking licence as it targets a self-proclaimed ambition of becoming "the Amazon of banking".

 ........Revolut was recently reported to have been holding talks with the SoftBank Vision Fund, the vast capital pool backed by Saudi Arabia's sovereign wealth fund, Apple and the Japanese technology company SoftBank.

 

.....Like many tech start-ups in their first five years of operation, Revolut remains loss-making although it broke even on a monthly basis last December.

A Revolut spokesman declined to comment on having secured its banking licence.

 

 

Edited by Julian_Williams

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The dream of having our crypto in the bank with our fiat is beginning to take shape :D

Developers + entrepreneurs + bankers = solarisBank

https://www.solarisbank.com/en/

"The multidisciplinary solarisBank team from 25+ nations combines startup engineers and entrepreneurs with seasoned banking and finance experts to create the perfect mix for a tech company with a banking license."

 

Germany’s Second-Largest Stock Exchange and SolarisBank Partner to Launch Crypto Exchange

https://cointelegraph.com/news/germanys-second-largest-stock-exchange-solarisbank-partner-to-launch-crypto-exchange

 By Adrian Zmudzinski  DEC 12, 2018

"SolarisBank and Stuttgart Exchange Group are jointly developing infrastructure for a cryptocurrency exchange, Cointelegraph Germany reports Dec. 12.

The Stuttgart Exchange, founded in 1860, is the second-largest stock exchange in Germany and the ninth-largest in Europe. SolarisBank, on the other hand, is a German fintech company established in 2015 that holds a banking license and offers a “Banking as a Platform” service.

This news goes along with the plans announced by the exchange in May to release a zero-fee cryptocurrency trading application.

The two companies’ crypto exchange, “which is scheduled to launch in the first half of 2019,” will have SolarisBank acting as the exchange’s banking platform."

 

 

Edited by GiddyUp
sp

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On 11/4/2018 at 4:01 PM, Wandering_Dog said:

This may be old news, but I saw this on Revolut's website today:

image.thumb.png.d172476d3f7405bad5fe919059fad45e.png

I found myself on their US website today as I'm experiencing more pains with my US bank. So, off I go looking for a replacement bank. Revolut is about all that I can find for fintech in US commercial banking oriented towards an expat in Germany. Any more info about Revolut and XRP? Or better, reviews from current customers?

I use revolut in the UK. 

 

Originally got it for my holiday to Italy last year and it was great for using abroad and transferring EUR back to GBP. 

Then they added crypto and xrp. They have a vault function that rounds up spend to the nearest pound and you can save that into any currency or their crypto. I top up for daily train tickets and coffee etc. and have saved quite a bit of xrp this way. 

Once they have a full current account offering I'm switching to them as my main bank. 

 

PS if you have no fiat in the account but there is xrp it will let you spend the crytpo as if it was fiat. 

The main outstanding issue with revolut is its an IOU and as such you can't move the xrp to an external wallet, my advice would be to only keep a small amount on there. 

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I have been using Revolut for about two years, and they are second to none when it comes to currency exchange. As mentioned elsewhere, they have also won an EU banking license just this week. WIll be interesting to see what they can do with that. They are moving into the US and many Asian countries next year, apparently.

I recommend them as a travel-card, and maybe increasingly as a current accnt/savings acount card from next year, at least in the EU.

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Great for currency exchange but charge around 3.5% to buy xrp. Eg. exchange £100 on xrp then immediately exchange back and you’ll get around £96.50 back. Pros: immediate/convenient. Cons: more expensive than say Gatehub, not able to transfer xrp in/out. Ideal for purchasing during a run/fizz (would be nice to see this soon as sadly it hasn’t happened much rec).

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