London-based digital banking giant Revolut has officially announced plans to apply for a full banking licence in South Africa, marking its first strategic move into the African continent. The announcement, made on 23 September during the opening of Revolut’s new global headquarters in London, signals the company’s intent to compete directly with South Africa’s growing digital banking sector.
Revolut, founded in 2015, has rapidly scaled to serve over 65 million customers globally, including 12 million in the UK. CEO and co-founder Nik Storonsky has set ambitious targets for the company, aiming to reach 100 million users by mid-2027 and expand into 30+ new markets by 2030.
A Shift in Strategy
Historically, Revolut entered new markets using limited regulatory approvals such as e-money or payments licences, which restricted its ability to offer full banking services. Storonsky acknowledged that this approach led to “a worse product,” prompting a strategic pivot: Revolut will now pursue full banking licences or acquire existing banks in new markets to deliver a complete suite of financial services.
In South Africa, Revolut plans to operate as a fully licensed bank, pending regulatory approval. Jacques Meyer, CEO of Revolut South Africa, emphasized the country’s readiness for disruption:
The market is primed for innovation, and we see a clear opportunity to bring our product expertise and customer-first approach to South Africa.
Meyer added that securing a banking licence would enable Revolut to offer a comprehensive product range, including accounts, loans, and investment services, rather than a limited app-based experience.
Competitive Landscape
Revolut’s entry into South Africa places it in direct competition with established digital banks such as TymeBank, Discovery Bank, and Bank Zero, all of which have made significant strides in customer acquisition and product development.
- TymeBank, focused on financial inclusion, was valued at R26.7 billion by the end of 2024.
- Discovery Bank, targeting affluent customers, reached 1 million users by September 2024.
- Bank Zero, a digital-only bank, is in the process of being acquired by Lesaka Technologies in a R1.1 billion deal.
Revolut’s typical strength lies in middle- and upper-income markets, overlapping with Discovery Bank’s target demographic, which could intensify competition in South Africa’s digital banking space.
Global Expansion & Investment
Revolut’s move into South Africa is part of a broader global expansion strategy. Earlier this year, the company secured a payments licence in the UAE and is exploring a bank acquisition in the United States to accelerate its growth.
To support its global ambitions, Revolut is currently raising funds at a $75 billion (R1.29 trillion) valuation and has committed to investing $13 billion (R224.9 billion) over the next five years. This capital will be deployed across key markets including the UK, Europe, the US, and emerging regions in Latin America, Asia-Pacific, the Middle East, and now Africa.
Storonsky previously described South Africa as an attractive market, and the decision to apply for a banking licence confirms that the company’s plans have progressed significantly.
Outlook
If approved, Revolut will be able to launch a full-service digital bank in South Africa, offering a competitive alternative to both traditional banks and local digital challengers. The company also expects to create 10,000 jobs globally over the next five years as it scales operations and enters new markets. South Africa’s robust regulatory framework, combined with a growing appetite for digital financial services, makes it a strategic entry point for Revolut’s expansion into Africa.
