The neobank already allows you to earn Avios on their debit cards
The points earning credit card landscape in the UK is pretty small, with just Amex, Barclays, Capital On Tap and HSBC in the arena. Filter those options down to ones that a regular consumer could get and that leaves you with Amex and Barclays. That could be about to change….
Can’t you earn Avios with Revolut already?
Yes, on their debit card. Since July 2024 you can earn RevPoints, which you can then transfer to BA, or other airlines. Avios transfers are at a 1:1 rate, and the rate at which you earn RevPoints is based on the Revolut plan you’re on
- Standard free account: 1 point per £10 spent
- Plus plan (£3.99/mo): 1 point per £10 spent
- Premium plan (£7.99/mo): 1 point per £4 spent
- Metal plan (£14.99/mo): 1 point per £2 spent
- Ultra plan (£45/mo): 1 point per £1 spent
Unless you’re on the Ultra plan the earn rate is low. That means you’re unlikely to amass a high number of Avios.
What’s happening with Revolut and a credit card?
Revolut are in the early stages of launching a reward based credit card – note that it’s not just a credit card, but rather one being built specifically to reward spend. The card will be centred around the RevPoints scheme.
Given that credit card interchange fees for retailers are higher than debit cards, that should in theory allow Revolut to match or even beat other rewards based credit cards out there.
The plan is to have different credit cards for each of the Revolut plans, meaning that the earn rate could be different as well as the perks. Their higher plans already come with a significant number of perks, and ones that are more aligned with a younger generation.
Should Amex be worried?
Yes. Points collectors in the UK have been tied to our Amex cards for too long. The perks, especially if you’re outside of London, are a bit meh. Barclays came along with their Avios credit card and provided us with an alternative.
For Amex, the risk is more to do with age. Revolut is marketed squarely at the under 40s, with perks on their plans that fit that demographic. There’s some overlap with Amex (Insurance included, lounge access too) but plenty of fresh ideas around perks, like the free global e-sim that gives you 3GB of data every month, NordVPN membership, an FT subscription (might be pushing the higher end of Gen-Z there), The Athletic subscription and a lot more. They make Amex’s perks look pretty stale.
Revolut’s credit card could be more cost effective
Revolut’s monthly fees are also more palatable than Amex’s annual fees. Their Ultra plan is £45 (albeit at an introductory rate) meaning you’ll pay £540 over the year. Amex’s Platinum card is £650/year. The real benefit comes from spreading the cost out over twelve months.
Amex do generally offer good customer service, their app is decent, and of course the thing that really reels people in is the introductory card offers with tens, and sometimes hundreds of thousands of Membership Reward points
Will a card be launched for businesses?
Revolut offer business accounts, but at the time of writing they do not generate RevPoints from spend. That makes it less likely that the new credit cards will be launched for businesses, certainly not at launch. Revolut will prioritise consumers. This isn’t a huge issue for businesses. SME’s have long enjoyed a greater range of credit cards than consumers.
Revolut’s credit card: the final word
There’s no data set for the launch of the card, but when it does come to market it can only be a positive thing for all points collectors, even those that won’t use it. Amex have been the incumbent for a while, and – dared I say it – they’ve got a little lazy. Their efforts seem to be spent on introductory offers rather than adding long term value for card members.
Yes, Amex does run some cash saving, or Avios earning, offers within their app and website, but the onus is on consumers to keep checking, and then use, them. It feels very much like you have to put the effort in, whereas with Revolut their perks are automatic, from the start, and IMHO better.
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