Revolut Gains Banking Licence in Mexico: Eyes the Cross-Border Remittance Market

The UK-headquartered fintech giant Revolut has continued its expansion efforts as it recently received a banking licence in Mexico, Reuters reported. The approval from Comisión Nacional Bancaria y de Valores will now allow the company to establish itself as a bank in Latin America.

“This licence will allow Revolut to offer a wide range of financial products and services to users in Mexico,” the company said in a statement. The company is now preparing for a third-party audit process that will follow the launch of its expansion in the country.

A Lucrative Market for Cross-Border Remittances

In Mexico, the British fintech’s focus will be on cross-border remittances for local customers. Indeed, it is a lucrative market as remittances to Mexico jumped 8 percent to reach a record $63.3 billion in 2023, most of which came from the United States.

Revolut also operates in the European Economic Area, with a banking licence obtained from the central bank of Lithuania. In its home turf of the UK, the company operates with a payments institution licence as its application for a banking licence in the country is being processed.

Last November, the firm created a new CEO role for its UK division, which has applied for a local banking licence. Francesca Carlesi, who co-founded and previously led a digital mortgage lender, has been appointed to this role.

A Growing Customer Base

Apart from the banking licences, Revolut holds about 50 other regulatory permissions globally. The number of customers on the platform has reached over 40 million globally.

Meanwhile, Revolut is expecting to report a revenue of $2 billion in 2023 with a double-digit net profit margin. In 2022, the company generated $1.1 billion in revenue, 45 percent higher than the previous year.

“2022 was another great year for Revolut, one where we broke away from the pack of our competitors,” Revolut’s CEO, Nik Storonsky said earlier. “Looking ahead, our focus is on continued growth across all our markets.”