2023 has been an eventful year for Revolut, the global financial super app. Having launched its app in New Zealand and Brazil, the organisation is consequently available in 41 markets. But it is not stopping there. Due to the growth of digital adoption in the rest of Latin America (LatAm), Revolut is planning its next steps for expansion into the region.
According to Statista, the transaction value of digital commerce in LatAm was estimated at more than $100billion in 2019. Based on current growth, it is expected to increase by approximately 73 per cent by 2025. As a result, Revolut is looking to capitalise on the growing LatAm market, providing new customers with offers such as free transfers.
Offering the unbanked populace of LatAm, which was estimated to be around 122 million people in 2021 according to the World Bank, a digital solution, Revolut aims to bolster financial inclusion with its Lite app. It enables consumers to send transfers to another Revolut customer for free via Revolut’s P2P system, card transfer and international bank transfers. While already up and running in LatAm countries, namely Brazil Chile, the company wants to expand into Ecuador and Argentina. Furthermore, Revolut’s Lite app is also live:
- Saudi Arabia
- Sri Lanka
Existing customers in Chile have already transferred more than £1.2million with an average transaction amount (sending and receiving) of £800. Furthermore, 90 per cent of the customers are able to receive money within 24 hours.
Importance for expat communities
The expansion into LatAm is increasingly valuable to the three million Revolut expat customers in Spain and Portugal, who look to send money back to their families. Of the top 20 expat communities in Spain, eight are from LatAm countries. In Spain, according to the Instituto Nacional de Estadística, more than 880.000 immigrants from Latam countries send money to their home countries at least once a year.
For Portugal, almost 800.000 expats live in the country. Thirty per cent are Brazilian, according to data from Serviço de Estrangeiros e Fronteiras (SEF). For these communities, the launch of Revolut in Brazil gives them the opportunity to send money to their country of origin in a fast, simple and affordable manner.
Building a financially inclusive world
Revolut isn’t only targeting emerging markets. In its mission to create financial inclusion for all, Revolut is also focusing on developed markets, like the US. It is offering accounts to non-US citizens lawfully in the US, who do not have an SSN/ITIN.
There are more than 2.5 million people in the US on some sort of visa and who do not have a SSN or ITIN; of which 1 million are students. This population is generally ignored by financial institutions. As a result, they do not have access to cost-effective financial services; they are left with limited options for managing their finances.
A clear example of the value of this service is the large remittance corridor that exists between the US and Mexico with more than $60billion a year. Revolut users in the US can greatly benefit from Revolut’s services to send and receive money to and from the neighboring country. Therefore, Mexico is also one of the most important and upcoming targets on Revolut’s international expansion list.