British digital banking app Revolut has broken even for once, in a rare development for a niche sector in which has struggled with profitability.
Revolut said Monday in which the idea had broken even for once in December, in addition to in which its monthly transaction volume surged to $1.5 billion, an increase of over 700 percent inside the last 12 months.
The start-up has signed up a total of 1.5 million users to its mobile app, up 50 percent coming from a figure the idea achieved in November.
The firm declined to disclose any figures on revenues or losses, in addition to said the idea made no sense to do so due to the competitive market the idea operates in.
Revolut’s app lets customers open a current account in 60 seconds, in addition to offers currency exchange at the interbank rate. Last year, the start-up introduced a feature in which let users buy, hold in addition to sell cryptocurrencies including bitcoin, ethereum in addition to litecoin.
the idea claims the idea is actually the first digital challenger bank to break even. Challenger banks are little banking groups, predominantly based inside the U.K., set up with the aim of competing with larger lenders.
Britain’s Monzo in addition to Germany’s N26 are among such start-up banks in which have faced difficulty in turning user growth into profit.
However, brand new European rules in which open up the data of big banks to third party firms could point to increased competitiveness for fintech start-ups in addition to big tech firms.
Revolut applied for a European banking license in November, in addition to looks to provide deposit in addition to credit services under in which regulatory framework.
The firm said the idea plans to expand to the U.S. in addition to Canada within the next few months. the idea will subsequently launch in Singapore, Hong Kong, Australia, brand new Zealand, India in addition to Brazil.
“Whilst the idea is actually encouraging to see in which our business type is actually working, becoming a profitable business is actually not our priority right right now,” Revolut co-founder in addition to CEO Nikolay Storonsky said in a statement Monday.
“We are completely focused on expanding Revolut to as many countries around the entire world as possible, with the United States, Singapore in addition to Australia almost ready to go.”