Revolut enters Mexico’s banking space
This week, Revolut announced it has received final approval to begin offering banking services in Mexico, which (it says) makes it the first independent digital bank to complete the full licensing process “from scratch” in the country. We’ve taken a look at its updated competitor mix in Mexico.
Revolut will be able to offer a wide range of financial services with the new banking licence, which it secured via authorisation from the National Banking and Securities Commission and the Bank of Mexico. Under the licence, it will be able to secure customer deposits of up to MXN 3.4m ($184,000) through local deposit insurance protection. The move builds on the company’s strong presence in the Americas, where it already operates in the US and Brazil and is currently trying to procure a banking licence in Colombia and acquire a bank in Argentina. Separately, Bloomberg reported that Revolut is moving towards finalising a $3bn fundraising round that would value the company at approximately $75bn.
Mexico continues to see interest from a number of other global digital challengers in the space, drawn not just to the country’s high inbound remittances demand but also growing ecommerce amid financial inclusion challenges. The country’s inbound remittances reached $64.7bn in 2024 according to its central bank, though this figure has seen a significant dip in recent quarters that some have linked to a weakening labour market and US policy concerns.
Aside from this, though Mexico is seeing rapid smartphone adoption and internet penetration, many of its citizens are still unbanked, creating a significant opportunity for digital banks and remittances solutions that has in turn created a more competitive landscape. Digital banks such as Nubank and Ualá already offer app-based accounts and credit products tailored to Mexican users. Incumbent banks such as BBVA Mexico and Santander are increasingly offering digital solutions, though these haven’t always panned out, with Mexican fintech Klar acquiring Banorte’s Bineo digital bank less than two years after the bank launched it. Mercado Pago – the financial services arm of Mercado Libre – is one of the biggest payment platforms in Mexico and Latin America more widely, and overlaps with Revolut across several areas, including money transfers and payment processing.
Global fintechs that overlap with Revolut have also been increasing their presence in Mexico. For example, in January Wise enabled outbound remittances from the country, while in the same month Airwallex acquired Mexican fintech MexPago, enabling it to link its payments infrastructure. The crux is that Revolut faces significant competitive challenges in Mexico, and will need to prove that its solutions can differentiate to deliver meaningful advantages to Mexican consumers and businesses. With Mexico’s myriad opportunities across Revolut’s consumer and business offerings, it will also be a testing ground for its banking offerings as it continues to await its full banking licence in the UK.
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