The UK-based social trading platform is quietly planning to roll out a debit card in Q2 next year, according to images and emails seen by Business Insider.
Users would be able to spend their eToro earnings via the card and set up recurring payments. The service will likely initially launch in the UK. eToro’s other features include allowing users to make commission-free trades and automatically copy other traders on the platform, as well as an education service with market analysis.
How this plan fits into eToro’s strategy
eToro continues to enhance its product suite, offering users a more rounded set of services. The fintech, which launched a crypto exchange in April this year, also announced last week that it acquired Delta for an undisclosed amount, which aims to help investors make better decisions regarding their crypto investments.
With these efforts, in addition to the new debit card, eToro is moving to diversify its revenue — but it seems that, at least for now, it’s largely focusing on the trading industry.
The new debit card could help further enhance the customer experience for eToro’s 12 million users. By offering users a convenient way to withdraw and spend their funds, eToro is further streamlining its services.
This should help boost customer satisfaction and make the app stand out from some of its competitors, like Freetrade. And given that the fintech already has a large user base, there are many customers who could opt to sign up for the debit card.
The commission-free trading space is getting increasingly crowded, forcing players like eToro to explore other options. eToro isn’t only facing competition from other fintechs focused on trading, like Freetrade, but also from players in other fintech segments that are moving into the space, like neobank Revolut, which announced in August that it’ll be rolling out a commission-free stock trading service across Europe.
Additionally, foreign players are setting up shop in the UK, further intensifying competition in the country’s trading space: US-based Robinhood was granted a UK broker license from the Financial Conduct Authority (FCA) earlier this year, while Australian fintech Stake achieved the same in September.
With all those players competing in the space, offering the best user experience becomes critical, and a debit card that can make reinvesting or withdrawing investment earnings simpler is a good step in that direction. Moving forward, eToro could look into offering users access to a savings account in addition to investments to further boost customer satisfaction, a move we saw Robinhood make earlier this year.
Source: Business Insider