Revolut Sets Sights On South Africa As Its First African Market

South Africa’s already crowded digital banking sector is about to get a heavyweight challenger. Revolut, the London-based fintech giant with more than 65 million global customers, has confirmed plans to apply for a full banking licence in South Africa. If approved, this would mark the company’s first step into Africa.

Why Revolut Chose South Africa

For Revolut, the move is about more than just one market. Chief executive Nik Storonsky has been upfront: the company is chasing 100 million customers by 2027 and sees South Africa as both a standalone opportunity and a gateway to the wider continent.

South Africa’s financial system is considered one of the strongest and most regulated in the developing world. At the same time, a growing appetite for digital-first services makes the country fertile ground for disruption. Jacques Meyer, Revolut’s South Africa CEO, echoed this sentiment: “The market is primed for disruption, and we see a clear opportunity to bring our product expertise and customer-first approach to a country that is hungry for innovation.”

The Local Landscape: Not An Easy Ride

Revolut won’t have the stage to itself. South Africa already boasts three homegrown digital banks.

• TymeBank has carved out a niche by targeting lower-income customers and now carries a valuation of around R26.7 billion.

• Discovery Bank is going after higher-income earners and passed the one-million-customer milestone last year.

• Bank Zero, acquired by Lesaka Technologies in a R1.1 billion deal, has been steadily building its presence.

Add the traditional giants like Standard Bank and FirstRand into the mix, and Revolut faces a highly competitive environment. What sets Revolut apart is its decision to pursue a full banking licence from the start, rather than offering limited services through an e-money model. This means it could go head-to-head with both digital newcomers and legacy banks by offering accounts, loans, and investment products.

A Different Playbook

Revolut’s new strategy is rooted in lessons learned. Early international expansions without banking licences limited what the company could deliver. Storonsky has admitted that smaller approvals led to “a worse product.” The new game plan is clear: either secure full banking licences or buy existing banks outright.

The South African application follows similar moves in the UAE, the US, and across Latin America and Asia-Pacific. To fund these global ambitions, Revolut is raising money at a staggering $75 billion valuation and pledging $13 billion in investment over the next five years.

Why This Matters

If the licence is approved, Revolut will not only intensify competition among digital banks but also challenge South Africa’s traditional heavyweights. For consumers, this could mean more choice, sharper innovation, and possibly lower fees.

For Revolut, it’s a bold bet: enter one of the most sophisticated banking markets in Africa as a proving ground before taking on the rest of the continent.

{Source:Business Tech }

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