Revolut plans to enter the South African market by 2028. Will it be able to gain ground on its competitors?

The British fintech startup Revolut, founded by Nikolai Storonsky, plans to launch in South Africa by 2028 and is already seeing strong interest in its services from potential customers in the continent’s largest economy, according to Bloomberg.

Revolut plans to launch its signature ecosystem of offerings in South Africa, tailored specifically to the local market, Jacques Meyer, who heads the company’s operations in South Africa, told Bloomberg. According to him, the company submitted a license application to the South African Reserve Bank in September and will offer its products—including zero-fee accounts—to local customers as soon as the regulator approves the application.

"We are already seeing exceptional demand for our product, and the number of people on the waiting list is rapidly approaching 100,000," Meyer said.

The company views South Africa—one of the world’s most profitable banking markets—as a strategic entry point into Africa and plans to expand further on the continent, Bloomberg notes. Such moves will pit Revolut against both major local players and a growing number of digital competitors (including billionaire Patrice Motsepe’s GoTyme, as well as Discovery and Old Mutual banks), the agency notes. Among Revolut’s other potential competitors in Africa, Bloomberg cites retailers Pepkor Holdings and Shoprite Holdings, which plan to use data from their loyalty programs to enter the financial sector; as well as the region’s largest traditional banks, which are responding to modern challenges by placing greater emphasis on high-margin services for affluent clients.

“We’re not interested in chasing customer acquisition metrics just for the sake of making headlines; instead, our focus is on delivering a truly groundbreaking experience that fundamentally modernizes the way people manage their money,” Meyer said, commenting on potential competition in the market.

Last week, it was announced that Revolut is also launching in the United Arab Emirates (UAE). In mid-May, the company received authorization in the United Kingdom to provide a full range of banking services, and in March, it applied for a banking license in the United States.

Revolut currently has about 75 million users worldwide.

At the same time, the fintech company is considering a secondary share offering, in which Revolut’s entire business could be valued at $115 billion. In April, Storonsky stated that the company has no plans for an IPO until at least 2028, and that the bank may conduct several more secondary offerings before then. Revolut aims to reach a valuation of up to $200 billion before going public, the Financial Times reported.

This article was AI-translated and verified by a human editor