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London-based digital banking giant, Revolut eyes South African market

March 10, 2025

London-based digital banking giant, Revolut eyes South African market and has applied for a full banking license, according to sources familiar with the matter. This move positions Revolut to compete with local digital banks such as TymeBank, Discovery Bank, and Bank Zero.

In a statement to Techpoint Africa, Revolut confirmed its interest in the South African market, stating, “South Africa is a market we are evaluating, and one we see as attractive. However, we are quite early in the process.”

Revolut’s product suite includes multi-currency accounts, fee-free currency exchange, stock and commodity trading, and cryptocurrency trading. This diverse offering could disrupt South Africa’s banking sector and challenge traditional banks’ market share.

The company has appointed Tom Morrison as Head of Strategy & Operations in South Africa, indicating a commitment to establishing a local presence.

Revolut’s entry into South Africa aligns with its global expansion strategy

Revolut’s entry into South Africa aligns with its global expansion strategy, which includes recent moves into the Middle East and North Africa (MENA) region. The company has applied for licenses and secured investments from entities like Abu Dhabi’s sovereign investor, Mubadala, to support its growth in these markets.

Additionally, Revolut has expanded its Mobile Wallets feature to facilitate faster money transfers from Europe to Africa, partnering with services like Airtel, Orange Money, and MTN. This enhancement underscores the company’s commitment to serving the African market and leveraging the continent’s reliance on mobile wallets for transactions.

Revolut’s potential entry into South Africa could intensify competition among digital banks and offer consumers more choices in financial services. Although Revolute is a large global fintech with a $45 billion valuation, it also has the likes of Tyme Bank — a $1.5 billion fintech — to contend with. As the company navigates regulatory approvals and market entry strategies, its impact on the local banking landscape will be closely watched.

Foreign fintech expansions into Africa

Revolut’s move into South Africa is part of a broader trend of foreign fintech companies entering the African market. For instance, TymeBank, originally founded in South Africa, expanded into the Philippines, demonstrating the viability of digital banking models in emerging markets.

Similarly, global tech giants like Google, Facebook, Microsoft, and Amazon have established technology and startup hubs in key African markets, including South Africa, Nigeria, Egypt, and Kenya, reflecting the continent’s growing significance in the global tech ecosystem.

These expansions highlight the increasing recognition of Africa’s potential for digital innovation and financial inclusion. As Revolut embarks on its South African venture, it joins a cadre of global companies seeking to tap into the continent’s dynamic and rapidly evolving financial landscape.

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