- Revolut has debuted a subscriptions management feature, allowing clients to view and block recurring payments.
- The tool could be a powerful driver of customer acquisition and loyalty, as well as lay a path to primary bank status with more clients.
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The UK-based neobank's new "Subscriptions" feature enables clients to view and control recurring payments made using their Revolut cards. Through Subscriptions, a customer can see recurring payments and direct debits, flag recurring payments that Revolut hasn't detected automatically, block or unblock payments for individual subscriptions, and get notifications if there aren't enough funds in their account to cover an upcoming payment.
The neobank plans to expand Subscriptions' functionality in the future, including adding notifications for when a trial period is ending so customers can decide if they want to continue or block payment, according to Crowdfund Insider.
The new feature has the potential to be a significant competitive differentiator for Revolut. The ability to cancel subscriptions to services is a highly in-demand mobile banking feature: 38% of mobile banking users who responded to Business Insider Intelligence's UK Mobile Banking Competitive Edge Study 2020 (Enterprise only) considered the feature "extremely valuable," making it the most-valued digital money management feature.
However, none of the 10 largest UK banks supported subscription management features as of June 1, and only Lloyds has added it since. This combination of high value to consumers and rarity could make Subscriptions a powerful customer acquisition and retention tool for Revolut, helping it lure customers away from major UK incumbents that don't offer the feature.
Perhaps more importantly, Subscriptions could help make Revolut a bigger and less expendable part of its customers' financial lives. A major caveat of Subscriptions is that it only offers insight into recurring payments customer make with their Revolut cards.
This means that in order to take full advantage of the feature, customers will have to shift spending on subscriptions to streaming services, Amazon Prime, and the like over to their Revolut card. The cumulative effect is that Subscriptions could help Revolut push toward primary account status as customers increasingly integrate their financial lives with Revolut.
And the current rarity of the feature means customers who come to depend on the Subscription tool's money management benefits will be unlikely to switch banks, even given the availability in the UK of the Current Account Switching Service, which makes it easy for consumers to transfer accounts and recurring payments between banks.
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