Revolut valued at 75 billion USD! Expanding into Mexico! The first bank to open outside Europe

UK fintech giant Revolut launched full banking operations in Mexico on Tuesday, marking its first licensed bank outside Europe. The company invested over $100,000,000 USD, becoming the first independent digital bank approved through a direct application. With a valuation of $75,000,000,000 USD, Revolut views Mexico as a strategic testing ground for entering emerging markets.

Three Strategic Considerations for Revolut’s Choice of Mexico

Revolut’s decision to establish its first bank outside Europe in Mexico was not accidental but based on in-depth analysis of market opportunities, regulatory environment, and strategic value. CEO and co-founder Nik Storonsky describes the Mexican market as a blueprint for expanding into emerging markets, revealing the underlying logic of this decision.

First, Mexico has a population of approximately 130 million, making it Latin America’s second-largest economy, with a high proportion of young people. However, traditional banking systems are generally considered costly and bureaucratic. According to World Bank data, banking service fees in Mexico are relatively high in Latin America, and branch-based transactions often require long waits and tedious paperwork. This inefficiency creates a significant market gap for fully digital banks.

Second, there is room to improve financial inclusion in Mexico. Although smartphone penetration exceeds 70%, a considerable portion of the population still relies on cash transactions or traditional banking services. This transitional phase between traditional and digital finance is an ideal opportunity for fintech companies to demonstrate value propositions. Revolut found that consumers have a strong demand for lower-cost, easier-to-use banking apps, especially for cross-border remittances and multi-currency management.

Third, Mexico’s regulatory environment is relatively open and forward-looking. The country’s financial regulators have actively promoted fintech innovation in recent years, establishing a dedicated regulatory framework for digital banks. Compared to some emerging markets, Mexico offers higher transparency and a more stable legal environment, reducing policy risks for Revolut’s market entry. More importantly, Mexico’s geographic location and cultural ties make it an ideal springboard for further expansion into other Latin American countries.

Revolut views Mexico as a testing ground for its global expansion model. Business models, product features, and operational processes validated here can be replicated in other Latin American markets such as Brazil, Argentina, and Colombia, and even expanded into emerging economies in Asia and Africa. This “pioneer” strategy allows Revolut to build brand recognition and a user base before competitors enter.

$100 Million Capital and Regulatory Breakthrough Path

To obtain a banking license in Mexico, Revolut took an unconventional route, setting a new benchmark in the fintech industry. It became the first to gain approval through a direct application to regulators, without acquiring a local institution or forming a partnership. Although time-consuming and complex, this approach ensures Revolut’s full control over its operations and brand consistency.

The company invested over $100 million USD in the Mexico project, twice the minimum regulatory requirement. At launch, its capital adequacy ratio was 447.2%, far exceeding the standard. This excess capital allocation sends multiple signals. First, it demonstrates Revolut’s long-term commitment to the Mexican market rather than a short-term exploratory investment. Second, the high capital adequacy provides ample buffer for future expansion, enabling rapid growth without frequent fundraising. Third, it enhances confidence among regulators and consumers in this foreign fintech.

Key Data on Revolut Mexico Bank

Capital Invested: Over $100 million USD, twice the regulatory minimum

Capital Adequacy Ratio: 447.2%, well above regulatory standards

Credit Ratings: HR Ratings assigned HR AAA; S&P assigned mxA+ with stable outlook

Market Potential: Serving a high-cost, low-efficiency banking market of 130 million people

Credit rating agencies responded positively. HR Ratings awarded the company a long-term HR AAA rating, the highest in Mexico’s rating system, indicating extremely high credit quality and very low default risk. S&P Global assigned a mxA+ rating with a stable outlook, also considered high investment grade in international rating systems. These ratings not only elevate Revolut’s position within Mexico’s financial system but also open doors for future bond issuance or other capital market activities.

While the direct application route for regulatory approval is challenging, it offers strategic advantages. Many fintechs opt to acquire local small banks to quickly obtain licenses, but this often inherits legacy systems, cultural issues, and potential liabilities. In contrast, Revolut built its Mexico bank from scratch, allowing it to design operations according to its own technology architecture, risk controls, and user experience, avoiding the pains of integrating legacy systems.

This regulatory breakthrough also sets a precedent for other fintechs. Revolut has demonstrated that even without local acquisitions or partnerships, international fintech companies can gain regulators’ trust and approval by showcasing strong capital strength, robust compliance systems, and commitment to the local market. This could encourage more innovative financial service providers to enter Mexico and other emerging markets.

Product Design Targets Three Major Pain Points of Traditional Banks

Revolut’s product strategy precisely targets core pain points in Mexico’s traditional banking system. Its checking accounts offer automatic interest features, with the first 25,000 MXN (about $1,250 USD) earning higher yields. This design eliminates the hassle of manually transferring funds between checking and savings accounts, a common requirement in traditional banks.

In transfers and remittances, Revolut offers disruptive value propositions. Transfers between Revolut users are instant and completely free, regardless of amount. Transfers to external Mexican bank accounts incur significantly lower fees than traditional banks. More importantly, its international transfer feature supports over 30 currencies with highly competitive exchange rates, often close to interbank rates rather than retail rates offered by traditional banks.

For a country like Mexico with a large cross-border remittance market, this feature is especially valuable. Millions of Mexicans work in the US and other countries, regularly sending money home. Traditional remittance services like Western Union charge high fees, whereas Revolut’s low-cost digital solution can save these users substantial funds. This is not only cost-saving but also a form of respect and empowerment for migrant workers.

Revolut also targets specific consumer groups. Its Metal plan includes a custom metal card and access to VIP lounges at Mexico City airport, attracting high-end users and frequent travelers. The upcoming Revolut Kids & Teens program for ages 6 to 17 fills a market gap in financial education and digital payments for Mexican youth. Parents can manage their children’s spending, set limits, and view transactions in real-time, a family finance management feature rarely found in traditional banking products.

The user interface’s simplicity is another competitive advantage. Traditional banks’ mobile apps are often cluttered and difficult to navigate, whereas Revolut’s design philosophy is “everything should be done within three clicks.” Whether checking balances, initiating transfers, or exchanging currencies, users can complete operations in seconds, providing a smooth experience rare in Mexico’s banking sector.

$3.8 Billion Revenue and $75 Billion Valuation with Global Ambitions

Revolut’s expansion in Mexico benefits from its strong financial performance. The company announced 2024 revenue of $3.8 billion USD, achieving profitability for the fourth consecutive year. Such sustained profitability is uncommon in fintech, where many competitors are still loss-making. Revolut’s profit model relies on economies of scale, efficient operations, and diversified revenue streams, including subscriptions, transaction fees, interest income, and enterprise services.

In 2025, after completing a new funding round, the company’s valuation reached $75 billion USD, making it Europe’s most valuable private company and ranking among the top ten most valuable private companies globally. This valuation reflects investor confidence in Revolut’s global expansion potential. Unlike many fintechs dependent on a single market, Revolut has established a strong user base in Europe and is now replicating this success in emerging markets.

Mexico is just the beginning. Storonsky has explicitly stated that the Mexico launch will serve as a model for expanding Revolut’s banking infrastructure worldwide. The company is already exploring other high-potential markets such as Brazil, India, the Philippines, and Indonesia. These countries share characteristics of large populations, rapidly growing middle classes, rising smartphone penetration, and underserved traditional banking.

Revolut’s global strategy differs markedly from traditional banks’ expansion logic. Conventional banks need to establish branch networks, hire large numbers of staff, and maintain physical infrastructure in each new market, making international expansion costly and slow. In contrast, Revolut’s digital-first approach allows it to enter new markets quickly and at relatively low cost, with core technology platforms shared across countries and only local regulatory and market adaptations needed.