Revolut
reached 1 million retail customers in Australia, a milestone that puts the UK
fintech on par with locally-backed digital banks Up and Ubank in a
market where customer loyalty tends to shift quickly.
The
company, which launched full
operations in Australia in August 2020 with three employees, now has more than 100 staff
nationwide and plans to invest nearly $400 million into its Australian business
over the next five years. Revolut operates under an Australian Financial
Services Licence and Australian Credit Licence, both issued by the Australian
Securities and Investments Commission.
Revolut
said it saved Australians over $250 million in foreign exchange fees since
entering the market, based on comparisons with major bank pricing. The company
declined to provide details on its methodology for calculating the savings
figure.
Domestic Spending
Overtakes Travel Use
The fintech
has shifted from its original pitch as a travel card and currency exchange tool
to a broader financial app covering payments, investing, budgeting and
insurance. Revolut said customers now use the app more for domestic spending
than overseas travel, though it did not disclose specific transaction
breakdowns.
Since 2022,
Revolut’s Australian customer base has grown at an average annual rate of
nearly 100%, according to the company. Transaction volumes jumped 74%
year-over-year in 2024, while adoption of its paid Premium and Metal
subscription plans increased.
“We’re
incredibly proud of everything we’ve achieved in Australia. The fact we’ve
saved Australians $250million in FX fees proves our commitment to delivering
them the highest value and experience,” said Matt Baxby, CEO of Revolut
Australia.
“We’ve
come a long way since our launch in 2020, but our mission has stayed the same:
to put Australians in complete control of their finances and become their
everyday tool to spend, save, borrow and invest.”
Crowded Field Gets More
Competitive
Revolut’s
milestone comes as digital banks face intensifying competition in Australia. Up
Bank hit 1 million customers in November 2024, while Ubank, the digital arm of
National Australia Bank, reached the same mark weeks earlier. Both banks are
backed by established financial groups with deeper pockets and local regulatory
experience.
The
Australian neobanking sector is valued at roughly $25 billion and expected to
grow at about 8% annually through 2034, according to market research firms.
eToro dominates the country’s CFD trading market, where trader
retention rarely lasts beyond a year, according to recent ASIC data.
Revolut has
added dozens of products since entering Australia, including cryptocurrency and
stock trading in 2021, business accounts in 2023, and eSIMs in 2024. This year,
it launched what it calls Australia’s first combined in-person,
account-to-account and online merchant payment platform for businesses.
Regulatory History
Includes Recent Fine
The
company’s Australian expansion hasn’t been entirely smooth. Last year, AUSTRAC fined
Revolut Australia $123,000
for late compliance reporting, though the financial intelligence agency noted
Revolut was cooperative and promptly paid the penalty.
Revolut sought a full
banking license in Australia in 2023, applying to become an authorized deposit-taking
institution. The application remains pending with ASIC. The fintech has pursued
banking licenses in multiple markets, including Peru and the United
States, where it
recently dropped plans to acquire an existing lender.
Charlie
Short, Head of Growth at Revolut Australia, said the company plans to increase
marketing spending and maintain aggressive product development this year.
“1 million customers is not the end goal, it’s the proof point,”
Short said.
“Starting
2026 as one of the country’s top financial apps, we’ve already built real
momentum in the market. This year will see us double down on marketing
investment and remain aggressive with product delivery, pushing us into our
biggest year yet.”
Revolut now
operates in over 40 markets globally with more than 70 million customers. The
company recently reached 6
million users in Spain, becoming that country’s fourth-largest bank by customer penetration.
This article was written by Damian Chmiel at www.financemagnates.com.
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