Revolut, valued at a staggering $45 billion, has confirmed its interest in entering South Africa’s increasingly competitive digital banking landscape.
“South Africa is a market we are evaluating, and one we see as attractive, with the potential to offer a unique value proposition to customers in the future. However, we are quite early in the process,” a Revolut spokesperson told TechCentral.
The London-headquartered neobank hired Tom Morrison as Head of Strategy & Operations for South Africa three months ago, though the company hasn’t listed any additional South Africa-specific positions since then—suggesting their local strategy remains in early development.
While Revolut brings global muscle with 50 million customers, it faces formidable local competition with the likes of TymeBank, a home-grown success story that knows the market well. Condia reported last year that TymeBank secured a $9.5 million investment from ARC, further solidifying its $1.5 billion valuation and 10 million+ customer base. Profitable since December 2023, its hybrid model and planned expansion into Southeast Asia position it as a tough rival.
Notably, TymeBank’s strategic partnership with Kazang, enabling cash withdrawals at thousands of informal traders, highlights its commitment to addressing the unique needs of underserved communities, a stark contrast to Revolut’s traditionally premium focus.
Furthermore, Revolut’s focus on middle and upper-income customers puts it in direct competition with Discovery Bank. With over a million customers and a product suite that mirrors many of Revolut’s core offerings—including multi-currency accounts and premium benefits—Discovery has already secured a strong foothold in South Africa’s most lucrative banking segments, leaving little room for easy gains.
Revolut’s path to full South African operation hinges on securing a banking license from the SARB’s Prudential Authority, a demanding process. While its app offers limited services across Africa, South Africa represents its first potential licensed foothold. Success here could be pivotal, acting as a launchpad for broader African expansion and contributing significantly to Revolut’s global 100 million customer target.
Revolut’s global success stems from its evolution beyond personal banking into a full financial platform, offering stock and commodity trading, cryptocurrency services, insurance, and business banking. While it’s unclear which of these will be available in South Africa, its expansion could shake up the market.
The company has already signaled interest in Africa, enhancing its Mobile Wallets feature for cross-border transfers and partnering with regional providers like Airtel, Orange Money, and MTN. If it can navigate regulatory hurdles and carve out market share, Revolut could intensify competition with both digital challengers and traditional banks, ultimately expanding consumer choice.
