UK unicorn Revolut on the way to Asia to challenge local payment apps
UK fintech unicorn Revolut will launch its digital “banking alternative” in Singapore and Japan in the first quarter of next year after obtaining the requisite licenses to operate in the two countries, it said.
n
The startup provides a range of online financial services including an app-based current account and a multi-currency, fee-free mobile wallet that allows for domestic and international transfers, and cryptocurrency exchange.
n
It also offers a physical prepaid card – from either Visa or Mastercard, depending on the user’s location – that is linked to the app. Payments can be instantly recorded, viewed, and managed in-app – the idea being that users can better plan their finances.
nn
Photo credit: Revolut
nn

n n
The Monetary Authority of Singapore (MAS) has granted Revolut a remittance license in addition to stored value facility approval, while Japan’s Financial Services Agency (FSA) has given the startup a fund transfer license.
n
The MAS remittance licenses enable Revolut to handle cross-border money transfers and transactions in line with local regulations. The stored value facility will allow it to hold users’ money on their behalf. However, not all of the features currently available to European users – including cryptocurrency storage and trading – will make it over to Singapore just yet due to regulatory issues.
n
The FSA-issued fund transfer license is “identical to the e-money license that Revolut holds in Europe, which allows us to offer all our core features,” a company spokesperson told Tech in Asia.
n
Revolut has raised over US$336 million in total funding to date, and counts the likes of Hong Kong-based DST Global, London’s Balderton Capital, and US firms Index Ventures and Ribbit Capital among its investors. Following its US$250 million series C round in April, the startup was valued at US$1.7 billion.
n
The spokesperson confirmed to Tech in Asia that Revolut broke even in December 2017. It generates subscription revenue from its higher-tier “Premium” and “Metal” membership packages, as well as from business accounts aimed at enterprise customers – which it aims to bring to Asia in late 2019.
n
Revolut also gets income by selling third-party products and services, such as travel insurance and mobile device insurance, through its platform.
n
The company claims that 3.2 million users have signed up to its services across Europe, and that it has handled 245 million transactions worth a total US$32 billion to date.
n
Asians considering joining Revolut have had the opportunity to pre-register their interest at the startup’s website for several months. The company says that almost 10,000 people in Singapore – where it plans to locate its Asia-Pacific headquarters – and 3,000 in Japan, where it has struck partnerships with local players including Rakuten and Sompo Insurance, have signed up so far.
n
Revolut members will be able to use their app and card at any merchants supporting Mastercard or Visa payments across 150 countries.