Revolut Launches Into The Telco World Via Lyca Mobile Deal

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Lyca Mobile and Revolut want to improve customer experiences
Mobile virtual network operator Lyca Mobile is introducing an automated subscription payments through fintech provider Revolut in a UK telecoms first

Financial technology providers are now aiming to reduce friction in telecommunications payments, as mobile virtual network operators seek to improve customer satisfaction.

Revolut Pay has entered into the UK telecommunications market through a new partnership with Lyca Mobile. The partnership introduces automated payment features to Lyca Mobile's prepaid mobile services, addressing payment friction in a market segment where service continuity depends on reliable transactions.

The integration enables automated subscription management, where recurring payments process without manual input. In its first month, the system achieved a 100% authorisation rate for all attempted transactions.

Delivering a 100% success rate

Revolut Pay implements Direct Debit advance notice, a regulatory requirement in the UK banking sector that requires providers to inform customers before taking payments, while maintaining immediate processing capabilities of card payments.

Lyca Mobile

Frank Wiemann, Group Chief Marketing Officer at Lyca Mobile, explains: "This partnership is simplifying the way our customers manage their payments, offering convenience and peace of mind. We're excited to continue enhancing their experience with cutting-edge technology."

Data from the partnership indicates that 80% of Lyca Mobile customers with access to Revolut Pay use the automatic top-up feature, which adds credit when balances drop below set thresholds.

Revolut Pay

Such a high-profile partnership arrives as mobile virtual network operators face pressure to reduce payment friction, a term describing obstacles in payment processes that lead to transaction abandonment. 

Operators are currently facing pressure to make their payment systems simpler, particularly as traditional banks expand their digital services.

Lyca Mobile maintains a significant presence in the prepaid mobile calls sector, where payment system reliability directly impacts service continuity. The company operates in 22 countries across five continents, creating potential for expansion of the Revolut Pay integration beyond the UK market.

Implementing real-time transaction notifications informs customers immediately when payments are processed, providing transparency in the payment cycle. This feature aims to reduce customer service enquiries and improve user confidence in automated payments.

Alex Codina

"We're delighted to partner with Lyca Mobile and bring all the efficiency benefits of Revolut Pay to the world of subscription payments as we expand into the telecommunications sector," Alex Codina, General Manager of Acquiring at Revolut, says.

Expanding into telecommunications

For Revolut, which processes more than 500 million transactions monthly across its 50 million customer base, the partnership represents an entry point into telecommunications payments infrastructure.

In 2024, the company recorded earnings of £438m (US$532m) and now plans to expand Revolut Pay's payment methods to include Buy Now Pay Later (BNPL) services. These services allow customers to split payments into instalments.

Revolut's strategic roadmap for 2025 includes introducing digital mortgages in European markets and deploying branded automated teller machines in Spain. 

The company also plans to develop Revolut Kiosk for retail operations, exploring biometric payments technology that could integrate with telecommunications partnerships.

Revolut expanding beyond traditional banking services is enabling it to expand into new business sectors where payment reliability impacts overall service delivery. 

For mobile virtual network operators, payment system efficiency inevitably impacts customer retention and service quality.

Antoine Le Nel

Through their collaboration, Lyca Mobile and Revolut are demonstrating how financial technology providers and telecommunications companies could work better together moving forward.

In addition to addressing payment frictions across the mobile services sector, both companies are wanting to provide enhanced payment features for their customers. 

Antoine Le Nel, Chief Growth and Marketing Officer at Revolut, says: "We've grown to over 50 million customers in less than a decade, a tremendous achievement - and proof that consumers want more from their money."


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