Revolut to reward customer loyalty through crypto token launch

Revolut to reward customer loyalty through crypto token launch

Revolut to reward customer loyalty through crypto token launch

Revolut founder and CEO Nik Storonsky explained earlier this week that the neobank plans to launch its own cryptocurrency token with a focus on rewarding customer loyalty.

The coin - dubbed ‘Revcoin’ - will serve as a loyalty token. This will allow the company to reward users in a similar way to how air miles function in the travel industry.

The intention is that the token won’t be a stablecoin as the company wants it to have a demand-based dynamic value, making it tradable. In this way, loyalty will be used as an acquisition tool to attract new users.

DeFi on Revolut?

Revcoin will be launched initially on the Ethereum network with the intention of making it a multichain asset in the future. While it’s not a current priority, Revolut does plan at some stage to support non fungible tokens (NFTs) also. Longer term, the company sees an opportunity to do with DeFi protocols what it did with conventional banking - building a customer friendly UX layer on top of the underlying base utility.

Currently, Revolut offers users a custodial wallet, although the company is looking to facilitate non-custodial wallets that provide users full control of their crypto. Last month Storonsky told Reuters: “For example… decentralized wallets, and enabling deposits, withdrawals of crypto [and] staking, lending - that’s another piece that we’re missing and we’re working on”.

Walled garden

Revolut has come in for criticism in the past for restrictions it has placed on its users where crypto is concerned. Crypto can only be purchased and converted back into fiat currency within the app. It cannot be deposited or withdrawn directly. It can be spent but only when converted back to fiat currency first.

The company has cited regulatory concerns in taking a “walled garden” approach up until now. It has also been criticized for high fees. Revolut offers over 30 cryptocurrencies on its platform and charges between 1.5%-2% in fees for the purchase or sale of crypto.Storonsky has often acknowledged that the company has made mistakes. Despite its shortcomings, it has recognized the value in crypto adoption where direct rivals haven’t.

Revolut is also working its way towards a stock market listing. It has received 44 of the 48 banking licenses the company has targeted and is currently expanding into India, Brazil, Mexico and the Philippines.

This content is for informational purposes only and is not investment advice. You should consult a qualified licensed advisor before engaging in any transaction.

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