Revolut expands to South Africa, seeks banking licence

London-based financial technology firm Revolut is laying the groundwork for an entry into South Africa, setting up local entities and applying for a full banking licence in what would be its first move into Africa. 

In its 2025 annual report, Revoult discoled that it has incorporated Revolut Holdings South Africa and Revolut OpCo South Africa, both registered in July 2025. The firms share office space at Atrium on 5th in Sandton, Johannesburg, a sign the company is building a local presence ahead of regulatory approval. 

The move follows a November filing with the South African Reserve Bank’s Prudential Authority, where Revolut submitted a Section 12 application, the first step toward becoming a licensed bank in the country. The company has also named former African Bank chief executive Gaby Magomola as chairman of its South African unit. 

Revolut first flagged its plans for South Africa in September 2025 during the launch of its global headquarters in London. The expansion forms part of a broader strategy to enter new markets and deepen its reach across key regions.

A crowded but shifting market 

South Africa’s banking sector is already competitive, with established lenders and newer digital entrants vying for customers. 

Sanlam CEO Paul Hanratty said Revolut’s arrival could change the landscape, pointing to the lower operating costs of digital banks compared with traditional lenders. “It changes the competitive dynamics completely,” he said in comments. 

Digital banks such as GoTyme Bank and Discovery Bank have gained ground in recent years by offering app-based services and lower fees. Discovery Bank, launched in 2018, has grown to more than 1.5 million clients and reached profitability, underscoring rising demand for digital-first banking. 

Still, the country’s largest lenders Absa, Standard Bank, Nedbank and FirstRand remain dominant, holding more than 80% of deposits. These banks have been upgrading their own digital offerings, using their scale to retain customers. 

Revolut’s model centers on mobile banking, offering services that include transfers, cards, savings, trading and foreign exchange through its app. The company targets users who want low-cost, app-based financial services with a broad range of features in one place.

Strong growth and global push 

Revolut’s expansion comes alongside strong financial results. The fintech reported its fifth straight year of profit in 2025, with revenue rising 46% to £4.5 billion ($6 billion), driven in part by growth in its business banking unit. 

Customer numbers climbed 30% to 68.3 million, while transaction volumes jumped 67% to £986 billion ($1.3 trillion). Net profit reached £1.3 billion ($1.7 billion), up from £790 million ($1 billion) a year earlier. 

Chief executive Nik Storonsky said more customers are using Revolut as their main bank, reflecting broader adoption of its services. Much of the company’s income comes from card payments and subscriptions, rather than traditional lending, giving it a different earnings mix from legacy banks. 

Revolut is also expanding its presence beyond Europe. It expects to launch as a bank in Mexico and is preparing to enter other Latin American markets, including Colombia and Argentina. In the United States, the company has filed for a national bank charter, a step that would allow it to offer a wider range of services. 

Revolut targets global expansion

Founded in 2015 by Storonsky, a former trader at Credit Suisse and Lehman Brothers, Revolut has grown from a travel-focused payments app into a broad financial platform offering transfers, cards, savings, investments and crypto trading. 

The Bank now serves more than 70 million customers globally and operates in over 160 countries, with banking licences in multiple markets. Revoult recently received regulatory approval from the UK Prudential Regulation Authority to exit its mobilisation phase and launch as a bank in the UK, with 13 million customers already onboard.

For South Africa, approval from regulators will determine the pace of entry. But the early steps, local incorporation, leadership appointments and licence applications, suggest the company is preparing for a long-term play in one of Africa’s most developed financial markets.