Revolut, a London-based digital bank, has announced plans to apply for a full banking licence in South Africa, marking its first move into Africa.
The decision sets up competition with local digital banks such as TymeBank, Discovery Bank, and Bank Zero, all of which have been expanding their customer bases in recent years.
The announcement was made on 23 September as Revolut opened its new global headquarters in London.
The bank, founded in 2015, has grown rapidly to reach more than 65 million customers worldwide, 12 million of them in the UK.
Chief executive and co-founder Nik Storonsky said the company aims to serve 100 million customers by mid-2027 and plans to expand into more than 30 new markets by 2030.
Revolut has adjusted its international strategy after early attempts to enter markets without full banking licences led to limited services.
Storonsky said the company previously pursued smaller approvals such as e-money or payments licences, but the result was “a worse product.”
He said the new approach is to either obtain full banking licences in new markets or acquire an existing bank.
In South Africa, Revolut intends to operate as a fully licensed bank if regulators approve its application. Jacques Meyer, Revolut’s South Africa CEO, said the company believes the country is ready for new competition in banking.
“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,” he said.
According to Meyer, having a licence will allow the company to offer a complete set of products rather than a limited app-based service.
Revolut’s entry will not be without challenges. South Africa already has three home-grown digital banks competing alongside the big traditional players.
TymeBank, which focuses mainly on lower-income customers, has grown steadily and was valued at approximately R26.7 billion as of the end of 2024.
Discovery Bank, backed by insurance group Discovery, has targeted higher-income clients and reached one million customers by September 2024.
Bank Zero, another digital-only bank, has also been building its presence since its launch. Lesaka Technologies recently moved to acquire the group in a deal worth R1.1 billion.
Revolut typically performs strongest in middle- and upper-income markets—the same group Discovery Bank is aiming at—which could make South Africa a highly competitive space.
The move into South Africa is part of Revolut’s wider global expansion. Earlier this year, the company secured a payments licence in the United Arab Emirates and has been exploring a potential bank acquisition in the United States to speed up its growth.
It is also raising funds at a $75 billion (R1.29 trillion) valuation to support these plans. Revolut has committed to invest $13 billion (R224.9 brillion) over the next five years to fuel expansion, with money allocated to the UK, Europe, the US, and new markets in Latin America, Asia-Pacific, and the Middle East.
Revolut has said that South Africa is seen as a strategic market, both in its own right and as a possible entry point to the wider African continent.
At the beginning of the year, Storonsky described the country as attractive, but noted that the company was still in the early stages of considering entry. However, the decision to apply for a banking licence now indicates that its plans have moved forward.
If the application succeeds, Revolut will be able to launch a full banking offering in South Africa, which could include services such as accounts, loans, and investments.
This would put it in direct competition not just with existing digital banks but also with the country’s large traditional banks, which continue to dominate the market.
Revolut’s global ambitions are being backed by significant investment and job creation plans.
The company expects to create 10,000 jobs worldwide over the next five years as it builds operations in established markets and launches in new ones.
South Africa’s financial sector, with a strong regulatory framework and growing appetite for digital services, is seen as a good fit for the company’s next stage of growth.
BusinessTech
