London-based retail brokerage firm Trading 212 has launched a multi-currency payment card in the UK, further diversifying its business. The brokerage firm has partnered with regulated electronic money services provider Paynetics to introduce a payment card that offers users 1.5% cashback until the end of September, which will then decrease to 0.5%.

Expansion of Payment Card Business

These payment cards mark another step for the London-headquartered brokerage firm towards diversifying its revenue streams beyond forex and Contracts for Difference (CFDs) trading. The brokerage firm has been focusing on its physical stock trading platform in recent years.

According to documents filed with Companies House, the holding company of the Trading 212 brand stated that its "growth strategy focuses on the stock brokerage portion of the business, as well as increasing the value of client funds and client asset balances."

With this latest payment offering, the retail brokerage firm follows in the footsteps of several competitors like eToro, Equiti, and XS. These payment cards essentially allow brokerage clients to use cash sitting in their brokerage accounts for payments.

Interest Rates up to 5.2%

In an official announcement, Trading 212 explained that its clients can manage multiple currencies with an easy-to-use card. The card will also offer users an interest rate of 5.2%, paid daily and available for withdrawal at any time. While there is a monthly free withdrawal limit of £400, thereafter the platform will charge a 1% withdrawal fee. Additionally, the card is free for all users with no hidden fees or subscription plans. Currently, these payment cards are only available in the UK but will soon be offered in Europe as well.

To provide the payment cards, Trading 212 is leveraging the services of Paynetics, a company that develops and manages financial products for clients and has over 115 embedded financial clients.

Ivo Gueorguiev, Co-Founder of Paynetics UK, stated, "By using Paynetics' infrastructure, Trading 212 will be able to continue offering trading capabilities globally to investors."

Kaloyan Yanchev, Head of Payment at Trading 212, emphasized, "We are very committed to democratizing savings and investments, and this partnership enhances the functionality of our commission-free platform."

Established in 2004 as Avus Capital, Trading 212 is headquartered in Bulgaria and established its UK entity in 2013, with operations primarily focused in the UK and EU, running three entity companies in the UK, Cyprus, and Bulgaria respectively.

Reportedly, in 2022, the total revenue of the holding group was £114.9 million, down 17% year-on-year, but the majority of the business was contributed by the UK entity company, exceeding £98.7 million. Despite the overall group recording a pre-tax profit of £40.5 million, down from £86 million the previous year, the UK entity company recorded a pre-tax profit of £50.8 million at year-end, meaning the Cyprus and Bulgaria branches recorded a loss of £10.3 million at year-end.