Revolut is
negotiating the acquisition of FUPS, a Turkish digital bank, as the fintech
looks to enter the country’s rapidly evolving banking market. The talks
represent the latest step in Revolut’s ongoing push to expand its global
footprint, though no final agreement has been reached and the discussions could
still fall apart, according to people familiar with the matter quoted by
Bloomberg.
Any
transaction would need approval from Turkey’s Banking Regulation and
Supervision Agency, known locally as BDDK.
Revolut Pursues 100
Million Users Across Global Markets
Revolut,
led by billionaire Nik Storonsky, has built a user base approaching 70 million
customers worldwide. The company closed a
funding round in November at a $75 billion valuation, a 67 percent jump from its $45
billion valuation the previous year, as it posted revenue gains and attracted
investment from Nvidia’s venture arm.
The fintech
has been aggressively targeting new markets in recent months, from the Nordics
to Mexico. Revolut has pitched
expansion plans for China to investors, outlining strategies for hiring, licensing,
and scoping opportunities in the country.
Turkish Banks Digitize but
Still Rely on Physical Presence
Traditional
banks in the country have invested heavily in digital services, with the number
of active digital banking customers increasing to more than 120 million. Major
players like Garanti BBVA have integrated artificial intelligence and data
analytics to enhance customer service.
However,
these incumbents still maintain extensive branch networks, a dependency that
could give purely digital players an edge.
“Revolut’s potential entry into Turkey
makes strategic sense, intensifying competition in a market where incumbents
are already digitally advanced, but still depend on branch networks,” said
Tomasz Noetzel, senior industry analyst at Bloomberg Intelligence. “The
deal’s strategic execution will be critical to differentiation, beyond price
and user experience.”
Turkey’s
Banking Regulation and Supervision Agency launched digital banking regulations
in 2022, formally opening the door for neobanks. The regulator has granted
digital banking licenses to five institutions: Hayat Katılım, Kasa Katılım,
T.O.M. Katılım, FUPS Bank, and Ziraat Dinamik.
FUPS Operates With Minimal
Staff After 2022 Launch
FUPS
received its banking license in 2022 with founding capital of 1.5 billion
liras, worth just over $81 million at the time. The bank was established by
Lydians Elektronik Para ve Ödeme Hizmetleri, which operates as both a payment
service provider and electronic money institution. As of September 2025, FUPS
employed 60 people, according to data from the Turkish Banks Association.
The Turkish
opportunity follows Revolut’s entry into
Argentina in June 2025 by purchasing a local lender from BNP, where it acquired Banco Cetelem’s
local banking license and approximately $6.4 million in assets. The company has
pursued similar strategies in India, where it acquired Arvog
Forex in 2022 after
pumping over $45 million into the market.
Turkey’s
digital banking market was valued at $101.52 million in 2025 and is projected
to grow to $267.3 million by 2034, expanding at an 11.36 percent compound
annual growth rate. The country’s 80.7 million active cellular mobile
connections provide a substantial market for mobile banking applications.
In
September 2025, Revolut announced it
was eyeing a US bank buyout while committing £3 billion and 1,000 jobs to its
UK global headquarters.
More
recently, the fintech engaged with
Israeli regulators to obtain a “lean bank” license after entering the country in
2023, demonstrating the company’s willingness to pursue multiple regulatory
pathways simultaneously.
This article was written by Damian Chmiel at www.financemagnates.com.
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