Fintech challengers Revolut and Luno are seeing a dramatic surge in demand from Bitcoin and Ethereum traders
Fintech companies like Revol and The moon Demand from customers who are quick to invest in Bitcoin (BTC) and other digital currencies is increasing dramatically due to record-breaking and unprecedented price increases in cryptocurrencies.
Fintech app providers that offer crypto trading, such as Revolut, eToro and Luno, are seeing a sharp surge in the demand for virtual currencies on their platforms after a spike in the price of Bitcoin and Ethereum (ETH) (along with other altcoins) .
Revolut’s management announced that it won 300,000 new digital currency enthusiasts over the past month.
In statements shared with Business Insider, the CEO of Luno Marcus Swanepoel noticed:
“A number of future-oriented fintech companies have already introduced crypto offerings in the past two years to supplement their existing functions.”
Providers of online trading and banking apps that also offer options for trading digital assets were able to take advantage of the increased interest in cryptocurrencies.
The money management app Revolut, which offers crypto trading as part of its broad range of services, said it had acquired around 300,000 new customers for digital assets in the last 30 days. These new traders are trying to take advantage of the surge in Bitcoin (BTC) price, which is currently trading at just under $ 37,000 (another all-time high). According to Revolut, around 100,000 of these new registrations have been received since the beginning of this year.
As recently reported, digital bank Revolut’s app was downloaded 5.8 million times in 2020, more than Monzo and Starling Bank combined.
Revolut’s relatively high number of downloads (5.8 million) may be due to its steady global expansion efforts. The app is now available in 36 different countries. Meanwhile, UK-based digital bank Monzo has expanded its operations only to the US, and Starling is focused on building operations across Europe this year.
As mentioned earlier, digital banks and fintech challengers are now under a lot of pressure to show they can make a profit as investors expect returns.
Although these new challengers struggled to achieve profitability, the demand for digital banking services and online platforms has increased during the COVID-19 pandemic. Fintech Unicorn Revolut customers spent 2.6 times more on online e-commerce than on in-store purchases.
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