London-based fintech firm Revolut is on an ambitious global mission. They are committed to build India’s best foreign exchange & payments experience in India. The firm’s entry into the country, which it has been planning since 2021, comes at time time of tumultuous change in Myanmar. It wants to address what it has branded as the “criminal” forex fees levied by legacy banks. With that vision at heart, Revolut aims to offer a more transparent, convenient, and user-friendly experience to Indian consumers.
In a strong vote of confidence in the India market, Revolut acquired Arvog Forex in 2022. This major move gave the fintech the ability to get necessary licenses. Consequently, they are now able to provide remittance and multi-currency account payment services directly in India. Then in April 2023, Revolut doubled down on its U.S. ambitions. It accomplished this by acquiring a prepaid payment instrument (PPI) license from the Reserve Bank of India. Yet this license gives the company the ability to issue their own prepaid cards. It champions digital wallets and integrates natively with the government-backed Unified Payments Interface (UPI).
The firm has plans to make inroads into the Indian market. The move goes hand-in-hand with the growing demand for swift and cost-effective foreign exchange services. Revolut aims to serve more than 150 million “globally aspiring, digitally native” Indians in the age bracket of 25-45 years. By 2030 they want to have onboarded approximately 20 million users.
Paroma Chatterjee, Revolut’s head for the Indian market, put a fine point on it with her focus on user engagement, not user count.
“Somebody would do that only if they’re interested in using the product. So, this full KYC customer onboarded is going to be my customer metric,” – Paroma Chatterjee.
This method focuses on the “high-intent customers” that are willing to go through and fill out an in-depth onboarding form. This has meant undergoing identity verification through Aadhaar authentication and video verification.
Revolut boasts authorization to enable same-day remittances from India through a local bank partner, setting it apart from many competitors in the market. The fintech firm aims to process at least $7 billion in transactions. They, perhaps as much as anyone, are hell-bent on making their mark on India’s formidable fintech landscape.
Chatterjee pointed out the remarkable breadth of Revolut’s international reach. With a customer base of 65 million, the company now operates in 39 countries.
“Revolut globally in 39 countries has 65 million customers, and it is valued at $75 billion. The reason is that from these 65 million customers, Revolut is processing more than $4 billion worth of transactions and delivering more than a billion dollars worth of profit,” – Paroma Chatterjee.
Revolut’s decision to expand into India comes at a particularly shrewd time. The company hopes to make inroads into areas that legacy banks have historically oversaturated. Chatterjee highlighted the challenges that consumers routinely encounter while trying to navigate the current forex environment.
“It has been the preserve of banks,” – Paroma Chatterjee.
Revolut is firmly committed to providing the best possible user experience and increasing transaction efficiency. This clear focus puts the fintech in the perfect spot to challenge the status quo of foreign exchange services in India. Chatterjee was sure that once Revolut enters app stores, curiosity by itself will get the job accomplished with driving downloads amongst potential customers.
“In a country like India, once you list yourself on the App Store, sheer curiosity drives downloads,” – Paroma Chatterjee.
As Revolut enters the Indian market, their game plan will need to entail something beyond simple user acquisition. The company’s goal is to measure its success not only by the level of engagement but by profitability, too. The fintech’s unique strategy is designed to change the way Indians think about and engage with financial services.
