Revolut, one of Europe’s most significant fintech firms, might skip a London IPO in favor of New York if the CEO’s comments are anything to go by. Nikolay Storonsky has criticized the UK market for its lack of competitive advantage, citing stamp duty and limited liquidity as key deterrents.

His comments highlight a growing trend of British tech companies considering US markets for their public debuts. Storonsky highlighted the challenges of listing in London in a recent report by CityAM. He mentioned that if he gets a better product from the UK, he will list it there, but he insists that the US market offers better conditions than those in the UK.

Revolut’s CEO Critiques London

He pointed to the UK’s 0.5% stamp duty on share transactions, questioning how London could compete with the more attractive trading environment in the US.

This isn’t the first time Revolut has raised concerns. Earlier this year, the company reportedly joined other fintech players in calling for the removal of stamp duty. Despite recent government efforts to make London more appealing, Storonsky remarked that these changes might not be enough to retain British tech stars.

Storonsky revealed that if he were founding Revolut today, he’d start in the US, a stark contrast to the company’s London roots. He named US banking giants like JP Morgan and Brazilian neobank Nubank as Revolut’s key competitors.

The potential move to list in the US reflects decisions by other British firms, such as chipmaker Arm, which recently opted for a Nasdaq IPO. According to Revolut CEO, the US's deeper capital pools and broad investor interest make it an attractive option for companies aiming for successful debuts.

London Struggles to Attract Listings

The London Stock Exchange has reportedly faced stagnation this year, with only 14 new listings as of now. Outflows from UK equity funds have compounded these struggles, leaving regulators scrambling to enact capital market reforms.

Despite the IPO debate, Revolut continues to expand its business. The company recently secured a provisional banking license in the UK, aiming to become a fully-fledged lender in its home market. With over 10 million UK users, this move could bolster its prospects of obtaining a US banking license, further aligning with its global aspirations.

While marking the milestone of reaching 50 million customers in 9 years, Revolut recently unveiled its expansion plans. It includes AI-driven banking assistants, mortgages, business credit, and physical ATMs.