Fintech giant Revolut has revealed that it will roll out its payment solution, Revolut Pay, to its cryptocurrency users in 2025. The change is to enhance user protection against the scams that have surfaced as rampant issues within the cryptocurrency market. As scams have become more widespread, Revolut wants to ensure its users’ cryptocurrency transactions are safer.
Fraud Risks in Crypto
The problem is that crypto customers have limited visibility into exchange payments, leaving them vulnerable to fraud. Payment by card is another Revolut service lacking basic anti-fraud measures for such customers. Crypto transactions are more susceptible to scams than conventional transactions, and the former are harder to track.
The new fraud prevention measures proposed by Revolut were tested in the pilot program and demonstrated the effectiveness of the solution. During the 12-month trial, cryptocurrency users encountered 50% fewer attempts of fraud while using the improvements of Revolut Pay. Some of these enhancements include improved KYC matching, fraud alert systems, and transaction risk scoring for crypto merchants.
Fraud Prevention Enhancements
The enhanced system will include several layers of checks, such as KYC name match and proof of crypto transfer. These features guarantee that only the authorized user can perform the operations. Crypto merchants will also receive a risk score for every transaction, which will assist them in identifying fraudsters before transacting with them.
According to Alex Codina, Revolut’s General Manager for Merchant Payments, there are some difficulties in fighting fraud in the crypto sphere. He said that with the integration of Revolut Pay, users can safely purchase crypto directly from exchanges and other platforms.
KYC Name Matching
Another change is the KYC name matching process. This way, Revolut makes sure that the person conducting the transaction on the platform coincides with the one on the file exchange. There is always a mismatch of one type or the other, and the whole transaction is nullified. This provides an element of fraud prevention similar to that used in conventional card payments.
Justin Sun’s Bold Move: Will 53K ETH Buy Impact ETH’s Price?As important as it is to consider user experience while keeping safety in mind, Codina highlighted that Revolut’s model would introduce needed friction to highly risky transactions.
Crypto transactions have always been a target for fraud, and this is where Revolut’s new measures will be very helpful. These innovations will help make users’ investments and purchases less risky as cryptocurrency advances.
