Revolut Seeks South African Banking Licence in First Move Into Africa

Revolut, the London-based digital banking giant, has applied for a full banking licence in South Africa, marking its first step into the African market. The announcement was made on 23 September at the opening of Revolut’s new global headquarters in London and signals the company’s intent to challenge South Africa’s fast-growing digital banking sector.

Founded in 2015, Revolut has grown rapidly to serve more than 65 million customers worldwide, including 12 million in the UK. CEO and co-founder Nik Storonsky has set ambitious goals for the company, targeting 100 million users by mid-2027 and plans to expand into more than 30 new markets by 2030.

Storonsky admitted that Revolut’s early strategy, launching in new markets with only e-money or payments licences, limited the customer experience. “It was a worse product,” he said, noting that the company is now focused on securing full banking licences or acquiring banks to offer a complete range of financial services.

In South Africa, Revolut intends to operate as a fully licensed bank, subject to regulatory approval. Jacques Meyer, CEO of Revolut South Africa, described the market as primed 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 said. He added that obtaining a banking licence would allow Revolut to provide customers with accounts, loans, and investment services instead of a limited app-based experience.

Revolut’s entry sets it against established South African digital banks such as TymeBank, Discovery Bank, and Bank Zero. TymeBank, with a strong focus on financial inclusion, was valued at R26.7 billion at the end of 2024. Discovery Bank, which targets affluent customers, passed the one million customer mark in September 2024. Bank Zero, a digital-only bank, is being acquired by Lesaka Technologies in a R1.1 billion deal. Revolut’s focus on middle- and upper-income markets means it will likely compete most directly with Discovery Bank.

The move into South Africa forms part of Revolut’s global expansion. Earlier this year, the company obtained a payments licence in the UAE and is exploring a bank acquisition in the US. To fuel its growth, Revolut is raising funds at a $75 billion (R1.29 trillion) valuation and plans to invest $13 billion (R224.9 billion) over the next five years across markets in Europe, the US, Latin America, Asia-Pacific, the Middle East, and now Africa.

Storonsky has previously described South Africa as an attractive market, and the banking licence application confirms the company’s commitment to expanding on the continent.

If approved, Revolut will launch a full-service digital bank in South Africa, offering a competitive alternative to traditional banks and local fintech challengers. The company also expects to create 10,000 jobs globally in the next five years as it scales its operations worldwide.