Trading 212 Revenue Diversification: Unveils Multi-Currency Cards

Trading 212 revenue diversification launches multi-currency payment cards in the UK, offering cashback and interest to customers. London-based retail brokerage firm Trading 212 has expanded its business by launching multi-currency payment cards for UK customers. Partnering with regulated e-money services provider Paynetics, the broker offers a card with 1.5 percent cashback until the end of September, which will then drop to 0.5 percent.

The payment cards represent a further attempt by the London-based broker to diversify its revenue beyond forex and contracts for differences (CFDs). In recent years, the broker has focused on its physical shares trading platform. According to a Companies House filing, the holding company of the Trading 212 brand stated that its “growth strategy is focused on the stockbroking part of the business and on increasing the value of client money and client asset balances.”

However, with its latest venture into payments, the retail broker is aligning with several competitors, including eToro, Equiti, XS, and others. These payment cards enable brokerage customers to make payments using the uninvested cash in their brokerage accounts.

With its latest venture into payments, the retail broker is following in the footsteps of several competitors, including eToro, Equiti, and XS. These payment cards essentially enable brokerage customers to make payments using the uninvested cash in their brokerage accounts. The brokerage reiterated that the card will be provided at no cost to all users, with no undisclosed charges or subscription commitments. Currently exclusive to the UK, the payment cards will soon be accessible across Europe.

To introduce payment cards, Trading 212 has partnered with Paynetics, a company recognized for facilitating the creation and administration of financial products, serving over 115 embedded finance clients.

Trading 212 Revenue Diversification: Expands Services with Multi-Currency Payment Cards

“By using Paynetics’ infrastructure, Trading 212 will be able to continue empowering investors with the ability to scale their trading globally,” mentioned Ivo Gueorguiev, co-founder at Paynetics UK.

Underscoring the importance of the collaboration, Kaloyan Yanchev, Head of Payments at Trading 212, remarked: “Democratising savings and investments is something that we’re very passionate about, and this partnership allows us to increase the capabilities of our commission-free platform for our customers.”

Moreover, Trading 212, originally founded as Avus Capital in Bulgaria in 2004, expanded its operations by incorporating in the UK in 2013. The company primarily concentrates its business activities in the UK and the European Union, functioning through three entities: one in the UK, and two others in Cyprus and Bulgaria.

In 2022, the parent company garnered a total revenue of £114.9 million, marking a year-on-year decrease of 17%, as previously reported by Finance Magnates. Nevertheless, the majority of revenue originated from the UK subsidiary, amounting to over £98.7 million. While the overarching group recorded a pre-tax profit of £40.5 million, a decline from the previous year’s £86 million, the UK branch concluded the year with a pre-tax profit of £50.8 million. This indicates that the Cypriot and Bulgarian branches concluded the year with a combined loss of £10.3 million.

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