FinTech app Revolut has announced it will allow its business customers to make fee-free U.S. dollar (USD) transfers to the United Kingdom, IBS Intelligence reported Friday (June 10).
The new feature lets Revolut’s business customers receive USD payments via the Automated Clearing House (ACH) Network for payments as high as $1 million. Users will still be able to use International Bank Account Number (IBAN) details to get USD payments through the SWIFT network.
“With so many U.K.-based companies doing business in the U.S., we’re excited to move one step closer to borderless accounts,” Revolut Business Director James Gibson said in the report. “Allowing our clients to receive payments from a foreign country without asking the sender to use SWIFT saves the sender both time and money.”
Customers can access their U.S. account in the app by going to the “Home” menu, choosing the USD pocket, tapping the American flag and then selecting “Local,” according to the report. From there, they’ll see the account details that senders can use to pay money into their accounts.
Headquartered in London and founded in 2015, Revolut began as a prepaid card offering low-cost foreign exchange (FX) fees but quickly expanded its product and service offerings and branched out to other countries.
The company received a European banking license in 2021 and does banking in Belgium, Denmark, Finland, Germany, Iceland, Lichtenstein, Luxembourg, Netherlands, Spain and Sweden. The company has applied for banking licenses in the U.K. and the U.S.
Read more: Lack of UK Bank License Thwarts Revolut’s Super App Ambition
A study by PYMNTS and Visa found that at least half the British and American businesses that are planning cross-border payments innovations expect them to offer three key benefits: reduced costs, improved cash management and reduced fraud.
See more: US, UK Businesses Split Over Fraud-Fighting Ability of Enhanced X-Border Payments Tech
Agentic artificial intelligence (AI) promises to improve operational efficiencies and the customer experience offered by enterprises.
The advanced technology is finding applications in loan underwriting and fraud detection, and now it’s moving across borders.
TerraPay Co-Founder and Chief Operating Officer Ram Sundaram told PYMNTS as part of the “What’s Next in Payments” series focused on exploring AI’s use in banking and by FinTechs that automated decision making and streamlined processes will continue to transform global money movement, especially as faster payments gain ground in cross-border transactions. That’s the inexorable trend, but as Sundaram put it, there’s still room, and a necessity, to have some human interaction in the mix.
In terms of global fund flows, TerraPay’s single connection ties more than 3.7 billion mobile wallets together across 200 sending and 144 receiving countries, touching 7.5 billion bank accounts. As one might imagine, coordinating and enabling the transactions is complex.
“Obviously, in the best-case scenario, everything goes smoothly, but when things are not going smoothly, that’s when the customer queries come in,” Sundaram said.
It’s no easy task to find out straight away where a transaction is, as analysts and representatives at the company have to look at logs and query partner systems.
“A lot of that work is done manually,” said Sundaram, who added that the agents “know the corridors and the markets that they are working in, but it still takes some time.”
TerraPay is using AI models with machine learning to bolster customer support and automate tasks as financial institutions (TerraPay’s client base) send payments in real time, and those payments are processed into local markets’ beneficiary banks.
“We still don’t trust [AI models] to let them respond to the customer straight away, but we can do the analysis, and then that gets reviewed by an agent who decides if [information] is accurate or not and then sends it off,” Sundaram said.
The same principles are guiding AI models and company practices to improve technical and security operations, analyzing and categorizing anomalous transactions and automating integrations with partner firms.
“Compliance is an issue where there is a lot of review needed of the alerts, and we are using [AI models] to speed up those processes,” Sundaram said.
Asked by PYMNTS about how agentic AI can be harnessed, he said: “In financial services, you can’t take chances on technology like this, which has the freedom to go wrong. You have to be careful about making sure that it’s 100% reliable before we can let things run entirely by automation.”
Agentic AI also remains pricey. For example, OpenAI is charging $20,000 a month for its specialized agents. However, Sundaram said the industry will become commoditized quickly, which will lower prices, and some open-source offerings are capable.
“There’s a fire hose of news about breakthroughs and new ideas and new ways of doing things that are coming out on a daily basis,” he said.
Data underpins it all, and Sundaram told PYMNTS that no matter what the application, the information fed into the models must be clean. Most organizations have a range of data sitting in different intra-company silos, and those silos need to come down.
In addition, the data must be structured so that it is accessible and can be synthesized by the models. Many firms may have more than 1,000 software-as-a-service (SaaS) resources to which they are subscribed but are not accurately tracked or monitored.
“Every database is separated, each one sitting somewhere else,” he said.
The days of stitching together those separate SaaS offerings to run an enterprise are ending, he said, and we’re headed to a future when data is collected in one place.
AI models and agentic AI “are extensions of what we’ve always valued at TerraPay, which means building the most efficient infrastructure possible in order to make sure that transactions are processed safely, quickly and affordably,” Sundaram told PYMNTS. “We see AI and [AI models] as powerful tools that help us scale all this very quickly while making sure we build more and more efficiency into the system.”
