Revolut Launches in India: A New Player in Cross-Border Payments
British fintech company Revolut has officially launched in India, targeting a significant gap in the country’s cross-border payment services. Reports indicate that Indians spend about $30 billion abroad each year, with an estimated $600 million lost to bank fees. This situation has led to some negative perceptions, with Indian bank leaders referred to in less-than-favorable terms.
Paroma Chatterjee, the CEO of Revolut India, shared insights about the traditional banking system with TechCrunch, emphasizing its limitations. She mentioned the scenario where individuals had to rely heavily on banks for foreign currency exchanges, often incurring high fees in the process.
Revolut has been gearing up for its Indian launch since 2021, aiming to address the unmet needs in foreign exchange and payment transactions. The London-based fintech acquired ARVOG Forex to facilitate its entry and secured its license in 2022. Recently, it also obtained a Prepaid Payment Equipment (PPI) license from the Reserve Bank of India, which allows it to issue prepaid cards and support digital wallet integrations with the Unified Payment Interface (UPI).
With these regulatory approvals, Revolut intends to compete against traditional banks as well as other fintech companies in India. The startup is focusing on a demographic of over 150 million digitally savvy Indians aged 25 to 45, aiming to reach about 20 million users by 2030 and process transactions totaling at least $7 billion.
Chatterjee asserted that with such regulatory backing, Revolut has the potential to deliver a more distinct experience compared to those relying solely on bank partnerships. “We can provide the kind of customer experience we want to offer,” she explained.
For Indian customers, Revolut presents a prepaid wallet compatible with UPI, a unique UPI handle, and multi-currency Visa cards for both domestic and international use. Additionally, the service includes specialized accounts for children and teens, accessible through parental supervision, alongside budgeting tools that shed light on spending behaviors.
The startup possesses regulatory permits for domestic and international payments, allowing for immediate remittances from India through local banking partners.
Revolut’s approach differs from many Indian fintechs in that it requires a more thorough verification process, including checks against global sanctions lists. Chatterjee noted this strategy is designed to attract customers willing to undergo a detailed onboarding process.
She added that simply having a presence in app stores isn’t a marker of success, stating, “That’s not an indicator of our success.”
Instead, Revolut plans to gauge its success in India by measuring user engagement depth and profitability, rather than just focusing on user numbers.
Chatterjee reflected on the inflated claims by some players in the market about reaching hundreds of millions of users. Currently, Revolut serves 65 million customers globally across 39 countries and has a valuation of $75 billion, handling over $4 billion in transactions and achieving substantial profits from its customer base.
She also mentioned the recent boost in Revolut’s valuation—up from $45 billion last summer—due to secondary stock sales.
There’s already a waiting list of over 350,000 in India, with plans to onboard new users in the latter half of the year, pending completion of KYC and Anti-Money Laundering checks.
The company is considering partnerships beyond Visa, including with India’s Rupay, to enhance its product offerings for customers.
Revolut has invested $45 million in India thus far, localizing its technology to meet national regulations. Chatterjee noted plans for further investment as the venture grows.
Of its 10,000 global employees, around 3,500 are based in India, some of whom work on products tailored for international markets.
However, the road ahead includes significant competition. The foreign exchange market is predominantly controlled by Indian banks, and fintech competitors like Niyo, Scapia, FI, and BookmyForex are already operational in the remittance space.
