Fintech company, Revolut, contemplates strategies to compete with Chinese fintech heavyweights
Revolut, the UK fintech company that has become the crown jewel of Britain's booming fintech sector, is looking beyond its home shores and setting its sights on China and the Middle East for potential expansion.
As of mid-2025, Revolut is actively exploring opportunities in China but has not yet obtained specific Chinese regulatory approval or established full operations there. The company is in the early stages of evaluating licensing and hiring opportunities in China amid a regulatory environment described as “neutral” in the Asia-Pacific region.
The details of how Revolut would operate in China remain unclear, given the complexities of the Chinese financial regulatory system and the dominance of existing digital payment giants like Alipay (by Ant Financial) and WeChat Pay (by Tencent), which currently control a vast majority of the Chinese mobile payments ecosystem. Revolut’s expansion plan into China would position it as a competitor to these entrenched local players, but such competition would be challenging due to the strong local regulatory framework favoring domestic platforms and the deeply integrated consumer base of these incumbents.
In the Middle East, Revolut is also considering opportunities for global expansion. The regulatory environment in the region is described as “friendly” by Revolut, which could make it a more appealing market for the fintech company.
Revolut’s interest in expanding into markets with more “neutral” or “friendly” regulatory environments may be partially motivated by the regulatory challenges it has faced in its home market. The company has faced a series of regulatory headaches in the UK as it seeks to become a fully fledged bank.
Despite these challenges, a spokesperson for Revolut stated that the company is progressing through the final stages of mobilisation and plans to launch a fully regulated UK bank in 2025. The company's pitchdeck for its secondary share sale last year discussed its global expansion endeavors, indicating a long-term commitment to growth beyond the UK.
However, concerns have spiked that Revolut may ditch the City for the US when looking to IPO, given the deeper liquidity offered in the US market. Nik Storonsky, Revolut’s chief executive, previously stated that a London listing was “not rational” when compared with the US.
Rachel Reeves, the UK's financial services secretary, attempted to intervene to secure a meeting between Revolut and regulators, but was overruled by Bank of England governor Andrew Bailey. The Chancellor had hoped the meeting would help drive Revolut’s goal to become a fully fledged bank in the UK, but the meeting was derailed by Bailey’s concerns about regulation and political interventions.
Despite these challenges, Revolut continues to push forward with its expansion plans, assessing opportunities in China, the Middle East, and potentially taking on competitors in these markets. The company's journey is a testament to the ambition and resilience of the fintech sector, as it seeks to carve out a place for itself in some of the world's most competitive financial markets.
[1] Financial Times [3] Reuters
- With the regulatory environment described as "neutral" in China, Revolut is evaluating licensing and hiring opportunities, indicating a potential foray into the Chinese market, competing with domestic players like Alipay and WeChat Pay, despite the challenges posed by the complex Chinese financial regulatory system.
- Aiming to expand its business beyond the UK, Revolut is considering opportunities in the Middle East, where the regulatory environment is described as "friendly," potentially making it a more appealing market for the fintech company.
