Revolut, the fintech disruptor, shakes up Spain and Europe with new instalment payment options and ambitious European expansions.

Revolut's Instalment Plan: A New Way to Pay in Spain

Revolut, the digital banking powerhouse, has unveiled an instalment payment option for its credit customers in Spain along with Ireland, and Poland. This feature allows users to split purchases over €50 into fixed instalments, offering lower interest rates than traditional 'revolving' credit cards. The move reflects a growing consumer demand for flexible payment solutions, particularly in an era of rising living costs and shifting financial priorities. The system allows the customer to decide whether to pay in instalments at the end of the month or not, generating higher interest rates.

The strategy is straightforward: to make Revolut a more attractive everyday spending tool for Spaniards by offering them the kind of payment flexibility that traditional banks have long monopolized. Revolut’s step eliminates the need for third-party financing providers, a strategy that aligns with its goal of cutting out financial middlemen and keeping banking streamlined.

But the real question is: will Spanish consumers embrace this new feature? Given the country's growing reliance on digital banking and the success of competitors like Klarna and PayPal in the instalment space, the odds are in Revolut's favor. The key will be competitive interest rates and a frictionless user experience.

Beyond Instalments: Revolut's Spanish Ambitions

Spain has become a crucial battleground for Revolut. In 2024, the company reported a 60% growth in its Spanish user base, reaching over 4 million customers. This surge is largely due to aggressive localization strategies, including the launch of interest-bearing accounts and the integration of Bizum, Spain’s dominant peer-to-peer payment service.

Bizum’s integration into Revolut was a particularly smart move. Spaniards are fiercely loyal to Bizum, using it for everything from splitting bills at restaurants to paying rent. With 27 million Bizum users, the integration reinforces the push to make Revolut a potential primary account in Spain.

But Revolut isn’t stopping at digital-only features. The company has also announced plans to deploy branded ATMs in Spain starting mid-2025. These machines will not only allow cash withdrawals but also offer card issuance and—potentially—cash deposits. The ATM rollout is a strategic pivot that could help Revolut capture a segment of users still reliant on cash transactions.

Bridging Digital and Physical Banking: ATMs and Mortgages

Revolut’s ATM strategy is a clear indication that it wants to be more than just a digital bank. It wants a physical presence in key locations where foot traffic is high. Spanish banks closed 213 banks in 2023-2024, with around 21,000 banks closed over the last decade, leaving some communities underserved. By offering an alternative cash-access network, Revolut could position itself as a more accessible and consumer-friendly option.

They haven't forgotten the UK, either.

Additionally, Revolut is making moves into the mortgage market. The company has hired Stephen McCormick from Avant Money to lead its mortgage team, signaling a strong commitment to offering home loans across Europe by 2025. The initial rollout will begin in Ireland before expanding into Ireland, France, Spain and other key markets. Given Revolut’s reputation for digital efficiency, its mortgage offering will likely focus on streamlined application processes and competitive interest rates.

This mortgage move could be a game-changer. Traditional banks are notorious for their sluggish, paperwork-heavy mortgage processes. If Revolut can simplify and speed up the process while maintaining competitive rates, it could become a serious threat to established lenders.

European Expansion: eSIMs, Crypto, and What’s Next

Beyond Spain, Revolut is making waves across Europe. In March of last year, the company introduced eSIM services for customers in the European Economic Area (EEA), offering a seamless solution to avoid unexpected roaming charges in over 100 countries. This innovation caters to the growing number of digital nomads, frequent travelers, and business professionals who require reliable connectivity without the hassle of purchasing physical SIM cards.

On the crypto front, Revolut expanded its cryptocurrency exchange platform, Revolut X, to a range of European markets in late 2024. Targeted at experienced traders, this platform provides access to over 200 cryptocurrencies, reinforcing Revolut’s commitment to serving a tech-savvy, investment-focused audience.

With its rapid expansion and growing suite of services, Revolut appears to be positioning itself as a full-spectrum financial ecosystem. But what’s next?

What Revolut Might Be Planning

Given its track record, it’s safe to assume Revolut has more ambitious plans in the pipeline. Some potential future moves could include:

• Personalized Financial Products – AI-driven investment portfolios, automated tax planning, and bespoke credit products tailored to individual users.
• Deeper Market Penetration in Southern Europe – Spain is a testing ground, but similar localized strategies could be deployed in Portugal, Italy, and Greece, where digital banking adoption is growing.
• Expansion of Revolut Business Services – The company could introduce SME-focused lending, business credit cards, and deeper integrations with e-commerce platforms.
• Further Regulatory Plays – Revolut has secured banking licenses in various countries, but full-fledged banking services (like deposit insurance and lending products) could be next on its agenda.

Why It Matters: The Bigger Picture

Revolut’s expansion is more than just a fintech success story—it’s a glimpse into the future of banking. Traditional banks have been slow to adapt to changing consumer preferences, while Revolut moves at breakneck speed, rolling out features that anticipate rather than react to market demands.

By embedding itself into the daily financial habits of its users—whether through instalment plans, Bizum integration, or mortgage offerings—Revolut is positioning itself as an all-in-one financial powerhouse. It’s a strategy designed to lock users into its ecosystem, making it harder to leave for a competitor.

The company’s success in Spain could be a blueprint for its expansion across the rest of Europe. If it continues to innovate while maintaining user trust, Revolut could very well redefine what it means to be a modern bank.

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