Revolut customers will now be able to apply for between £500-5,000 in credit in two minutes and receive funds on their contactless card almost instantly.

The London-based company also plans to enable a P2P lending marketplace among its own user base of 530,000 Europeans, ultimately allowing customers to lend and borrow money across borders.

Nikolay Storonsky, founder and CEO of Revolut (pictured above, front right), said: “The fact that anyone can now apply for credit from anywhere in the world in two minutes, get the money instantly and spend it with a Revolut card without fees in any currency is mind-blowing.

“The same process to apply for a loan or credit card with my bank would take a week and cost me double.”

The Revolut app – which also serves as a current account and money transfer tool – will only require customers to state the amount of money they need, their monthly income and residential status.

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Revolut’s data on the customer is then fed into a credit decision model to increase the chance of thin-file customers being accepted at the best rate.

Customers are shown the total cost of their loan and how much they would repay on a monthly basis.

Once customers accept the terms in the app, they are able to spend their new credit anywhere in the world with real exchange rates and no transaction fees.

The entire process can take as little as three minutes.

Nick Harding, founder and CEO of Lending Works, added: “We are delighted to be partnering with Revolut in this venture, which breaks new ground within personal finance.

“We identify strongly with Revolut’s commitment to making financial services fairer and more efficient for consumers, and the fact that they have chosen our platform to deliver instant credit represents a gratifying seal of approval of the innovative technologies we use.”

Founded in July 2015, Revolut has since received funding from a number of well-known venture firms, including Wonga-investor Balderton Capital and Funding Circle-backer Ribbit Capital.