Somehow, I end up spending a significant amount of my time thinking, testing and playing with financial services, both old school banks and fintech startups.
One of the most recent ones I have been playing with is Curve. The premise of the service is to allow you to use a single card for all transactions, having the ability to then charge any card underneath it as it is convenient. This was a curious enough idea, so I asked the friend who was telling me about it to give me his referral code to sign up. If you want to sign up, my code is BG2G3.
Signing up and getting the card is quite easy, even though they have (or had when I signed up) a “waitlist” — so after you sign up it takes a few days for you to be able to actually order the card and get it in your hands. They suggest you to make other people sign up for it as well to lower the time in the waitlist, but that didn’t seem to be a requirement for me. The card arrived, to my recalling, no more than two days after they said they shipped it, probably because it was coming from London itself, and that’s all you need to receive.
So how does this all work? You need to connect your existing cards to Curve, and verify them to be able to charge them — verification can be either through a 3Dsecure/Verified by Visa login, or through the usual charge-code-reverse dance that Google, PayPal and the others all use. Once you connect the cards, and select the currently-charged card, you can start using the Curve card to pay, and it acts as a “proxy” for the other card, charging it for the same amount, with some caveats.
The main advantage that my friend suggested for this set up is that you if you have a corporate card (I do), you can add that one to Curve too, and rely on that to not have to do the payback process at work if you make a mistake paying for something. As this happened to me a few times before, mostly out of selecting the wrong payment profile in apps such as Uber or Hailo, or going over the daily allowance for meals as I changed plans, it sounded interesting enough. This can work both by making sure to select the corporate card before making the purchase (for instance by defaulting to it during a work trip), or by “turning back time” on an already charged transaction. Cool.
I also had a hope that the card could be attached to Google Pay, but that’s not the case. Nor they implement their own NFC payment application, which is a bit disappointing.
Beside the “turn back time” feature, the app also has some additional features, such as the integration with the accounting software Xero, including the ability to attach a receipt image to the expense (if this was present for Concur, I’d be a real believer, but until then it’s not really that useful to me), and to receive email “receipts” (more like credit card slips) for purchases made to a certain card (not sure why that’s not just a global, but meh).
Not much else is available in the app to make it particularly useful or interesting to me, honestly. There’s some category system for expenses, very similar to the one for Revolut, but that’s about it.
On the more practical side of things, Curve does not apply any surcharges as long as the transaction is in the same currency as the card, and that includes the transactions in which you turned back time. Which is handy if you don’t know what the currency you’ll be charged in will be in, though that does not really happen often.
What I found particularly useful for this is that the card itself look like a proper “British” card — with my apartment as the verified address on it. But then I can charge one of my cards in Euro, US Dollars, or Revolut itself… although I could just charge Revolut in those cases. The main difference between the two approach is that I can put the Euro purchases onto an Euro credit card, instead of a debit one… except that the only Euro credit card I’m left also has my apartment as its verifiable billing address, so… I’d say I’m not the target audience for this feature.
For “foreign transactions” (that is, where the charged currency and the card currency disagree), Curve charges a 1% foreign transaction fee. This is pointless for me thanks to Revolut, but it still is convenient if you only have accounts with traditional banks, particularly in the UK where most banks apply a 3% foreign transaction fee instead.
In addition to the free card, they also offer a £50 (a year, I guess — it’s not clear!) “black” card that offers 1% cashback at selected retailers. You can actually get 90 days cashback for three retailers of your choice on the free card as well, but to be honest, American Express is much more widely accepted in chains, and its rewards are better. I ended up choosing to do the cashback with TfL, Costa (because they don’t take Amex contactless anyway), and Sainsbury’s just to select something I use.
In all of this, I have to say I fail to see where the business makes money. Okay, financial services are not my area of expertise, but if you’re just proxying payments, without even taking deposits (the way Revolut does), and not charging additional foreign transaction fees, and even giving cashback… where’s the profit?
I guess there is some money to be made by profiling users and selling the data to advertisers — but between GDPR and the fact that most consumers don’t like the idea of being made into products with no “kick back”. I guess if it was me I would be charging 1% on the “turn back time” feature, but that might make moot the whole point of the service. I don’t know.
At the end of the day, I’m also not sure how useful this card is going to be for me, on the day to day. The ability to have a single entry in those systems that are used “promiscuously” for business and personal usage sounds good, but even in that case, it means ignoring the advantages of having a credit card, and particularly a rewards card like my Amex. So, yeah, don’t really see much use for it myself.
It also complicates things when it comes to risk engines for fraud protection: your actual bank will see all the transactions as coming from a single vendor, with the minimum amount of information attached to it. This will likely defeat all the fraud checks by the bank, and will likely rely on Curve’s implementation of fraud checks — which I have no idea how they work, since I have not yet managed to catch them.
Also as far as I could tell, Curve (like Revolut) does not implement 3DSecure (the “second factor” authentication used by a number of merchants to validate e-commerce transactions), making it less secure than any of the other cards I have — a cloned/stolen card can only be disabled after the fact, and replaced. Revolut at least allows me to separate the physical card from my e-commerce transactions, which is neat (and now even supports one time credit card numbers).
There is also another thing that is worth considering, that shows the different point of views (and threat models) of the two services: Curve becomes your single card (single point of failure, too) for all your activities: it makes your life easy by making sure you only ever need to use one card, even if you have multiple bank accounts in multiple countries, and you can switch between them at the tap of a finger. Revolut on the other hand allows you to give each merchant its own credit card number (Premium accounts get unlimited virtual cards) — or even have “burner” cards that change numbers after use.
All in all, I guess it depends what you want to achieve. Between the two, I think I’ll vastly stick to Revolut, and my usage of Curve will taper off once the 90 days cashback offer is completed — although it’s still nice to have for a few websites that gave me trouble with Revolut, as long as I’m charging my Revolut account again, and the charge is in Sterling.
If you do want to sign up, feel free to use BG2G3 as the referral code, it would give a £5 credit for both you and me, under circumstances that are not quite clear to me, but who knows.
