Revolut acquires a cashier

Revolut has announced the acquisition of Nobly, an electronic point of sale (ePOS) software company specialising in the restaurant and hospitality industries. This acquisition is intended to facilitate Revolut's expansion in these markets. It is also a big step towards physical points of sale for Revolut, which despite strong competition, expects this business to grow in the future.

FACTS

• Nobly was founded in 2013 and is the originator of a complete ePOS system, especially for professionals in the hotel and restaurant industry.

• Nobly's services are about more than just checkout. They allow their customers to track their transactions and orders, take inventory, manage their room service, develop a loyalty programme or even manage their orders remotely.

• Nobly is also working with partners to expand its offer (SumUp, QuickBooks or Xero).

• All these services will now be offered by Revolut Business and linked to a bank account to allow Revolut's professional hotel and restaurant customers to manage their finances centrally.

• In addition to the UK, the US and Australia, Revolut plans to expand its new offering to all locations where Revolut Business operates

CHALLENGES

• Facing fierce competition: Revolut is facing competition from American players in the segment of its offer dedicated to professionals. This competition is based on a software suite that is much more extensive than what Revolut currently offers. This weakness in the vertical dimension could be fatal and therefore motivates the neobank to move on this side of the value chain, even if it means doing so through partnerships or buyouts.

• Consolidate an offer dedicated to professionals: In addition to cash, Nobly offers a complete transaction management solution for merchants, thus enabling Revolut to move beyond its role as an alternative banker. This strategic decision adds a new dimension to the Revolut Business offer and allows it to make the transition to a model that is perfectly in line with the current trend.

• Betting on cross-channel: Revolut is, in essence, a digital neo-bank. Here again, with the acquisition of Nobly, a player in physical commerce, it is making a major strategic transition that will enable it to consolidate its positioning in hotels and restaurants

MARKET PERSPECTIVE

• Revolut's acquisition of Nobly illustrates the neo-bank's very positive predictions for the physical point-of-sale payment market. However, the market is hyper-competitive and sees classic terminals pitted against m-Pos and other SoftPos.

• This competition is even creating tensions on a global scale. A scandal has thus arisen in the United States, where the American authorities suspect that payment information from the Android terminals of the Chinese manufacturer PAX has been leaked. These suspicions have not yet been confirmed, but they nevertheless highlight the particularly sensitive nature of this market.