Hot fintech app Revolut stops issuing new cards as it changes licences

Revolut, the fast-growing international money exchange service, has stopped opening new accounts temporarily as it changes licences.

Founder and CEO Nikolay Storonsky told Business Insider: “At the moment, we don’t send new cards. We’re putting people on the waiting list.”

Two sources told Business Insider that the freeze is down to a disagreement with partner Paysafe, a company that issues cards and processes payments on behalf of Paysafe. The sources say Paysafe, formerly known as Optimal Payments, told Revolut to stop issuing new cards after discovering that many cards were being issued outside of Europe. Last week it emerged that Revolut had stopped operating all of its cards outside of the European Economic Area.

Storonsky did not comment on whether Paysafe had told Revolut to stop issuing new cards but said the geographic withdrawal was down to its partners. He says: “Because we work with Paysafe, they are not allowed to open accounts outside of Europe so we had to inform people that for a short time they will not be able to open accounts outside of Europe and then when we get our own licence we can open these accounts again.”

Paysafe, formerly known as Optimal Services, works with Revolut to provide money cards, linked to Revolut’s app, and process payments made through the system. Paysafe declined to comment.

Storonsky said that Revolut is in the process of getting its own issuing licence, which would bring the relationship with Paysafe to an end and allow Revolut to issue MasterCard cards itself. Paysafe has been working with Revolut for a year and a half.

“We’re hoping to get the licence this week,” Storonsky told Business Insider.

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Source: Hot fintech app Revolut stops issuing new cards as it changes licences | Business Insider