London-based digital banking giant Revolut is setting its sights on South Africa, having applied for a full banking license as part of its expansion into the continent. If approved, this move will place Revolut in direct competition with local digital banks such as TymeBank, Discovery Bank, and Bank Zero.
A Revolut spokesperson confirmed the company’s interest, 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 extensive product suite, which includes multi-currency accounts, fee-free currency exchange, stock and commodity trading, and cryptocurrency services, could disrupt South Africa’s financial sector. The company’s appointment of Tom Morrison as Head of Strategy & Operations signals a commitment to establishing a strong local presence.
This expansion aligns with Revolut’s broader global growth strategy, which has seen the company enter new markets in the Middle East and North Africa (MENA) region. Revolut has also secured investment from entities like Abu Dhabi’s sovereign investor, Mubadala, to support its expansion.
Additionally, the company 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 move highlights its focus on Africa’s growing digital payments ecosystem.
While Revolut boasts a $45 billion valuation, it will face competition from established local players such as TymeBank, valued at $1.5 billion. As it navigates regulatory approvals and market entry strategies, its impact on South Africa’s banking landscape will be closely watched.
Revolut’s move is part of a broader trend of foreign fintech companies entering Africa, drawn by the continent’s rapid digital transformation. TymeBank, originally founded in South Africa, has expanded into the Philippines, demonstrating the scalability of digital banking models in emerging markets.
Similarly, global tech giants like Google, Facebook, Microsoft, and Amazon have established technology and startup hubs across key African markets, including South Africa, Nigeria, Egypt, and Kenya. This growing presence underscores Africa’s increasing role in global digital innovation and financial inclusion. As Revolut embarks on its South African venture, it joins a wave of international firms seeking to capitalize on the continent’s evolving financial landscape.
