Ten Lifestyle Group PLC (LON:TENG), the concierge platform for the cash-rich and time-poor, has signed a multi-million-pound deal with fast-growing challenger bank Revolut.
Under the terms of the agreement, Ten’s services will be integrated into the Revolut app, allowing Metal cardholders to request travel, dining and ticket bookings from their phones.
READ: Announcement in full
The three-year contract, the first of its kind for Ten, is expected to be a ‘large’ one, worth upwards of £2mln a year.
“We are delighted to secure this contract with Revolut, one of the world's fastest growing fintech companies, founded in 2015 and currently used by more than four million customers,” said Ten chief executive Alex Cheatle.
“Revolut has developed significant innovations in the banking industry in a short period of time and we are confident that Ten will help further advance their proposition to Metal cardholders in selected markets internationally by providing market-leading access to travel, dining and entertainment services around the world.”
Banks need to add more services
Analysts at Peel Hunt said the tie-up should help to win new customers further down the line.
“This is a strategically important name. Ten wants to tap into the tech industry for both customers and employees and for those types of highly competitive companies to jump on board they need a reason,” said the City broker in a note to clients.
“This deal with Revolut provides Ten with the gateway between its traditional financial services customers (Revolut is a bank) and its new technology target market (Revolut is a tech start-up).”
Peel Hunt added: “This deal will also give traditional banks another reason to pay attention: more should bolt-on value-add services like Ten if they want to survive.”
£12.99 a month
Metal package subscribers pay £12.99 a month for a range of banking and non-banking services, including travel insurance and access to hundreds of airport lounges.
Previously, Ten’s rival, Sincura, provided the concierge services, but it was derided by some customers as nothing more than a glorified internet searcher.
Ten shares were up 2.1% in afternoon-trading on Monday to 95.5p.