Revolut users in 42 countries to have Lithuanian country code IBAN accounts

Revolut, a financial technology start-up, has started to use IBAN format for account numbers that can be used by financial institutions to credit funds into the beneficiary’s account in 42 European countries, announced company.

Lithuanian IBAN account numbers will be assigned to Revolut customers so that they will have a euro account number in any country in Europe.

All payments executed by traditional banks, including salaries, can now be made into Revolut customers’ accounts with IBAN format. In addition, this functionality will allow customers to withdraw cash from PayPal, Lydia or P2P accounts. A euro account can be opened in less than one minute on a smartphone using the Revolut application.

This financial technology start-up, known in some quarters as the “hooligan of banking”, has already attracted investment worth USD 66 million and has more than 700,000 users.

The central bank of Lithuania, Lietuvos bankas, has made an unprecedented promise to FinTech companies by announcing it will provide preliminary answers to financial institution licence enquiries within one week, the fastest turnaround in the EU.

The programme will apply to companies that are already licensed in another EU country and want to move their place of residence to Lithuania. Full authorisation will be issued in two to six months later (depending on the type of licence).

The Bank of Lithuania also recently launched the programme Newcomer, which aims to facilitate FinTech companies setting up in Lithuania by providing consultations and guiding companies throughout the licensing procedures. Companies can apply with their requests to Newcomer@lb.lt and expect an answer within two to three working days.

A range of other advantages are on offer to FinTech companies choosing to set up in Lithuania. Payment and electronic money institutions in Lithuania can access the Single Euro Payment Area (SEPA) through the infrastructure of the Bank of Lithuania, enabling them to reduce their dependence on banking competitors and offer a wider range of payment services.

Moreover, the Bank of Lithuania allocates a code to providers of payment services that is used to generate accounts in IBAN format no later than the following business day.