Revolut aims to take on Indian banks and their ‘criminal’ forex fees

British fintech firm Revolut is making its debut in India, highlighting the significant gaps in the country's cross-border payment services. The company estimates that Indians spend roughly $30 billion annually abroad, incurring approximately $600 million in bank fees, which Revolut's India head, Paroma Chatterjee, describes as "criminal." Chatterjee emphasized that cross-border financial services have traditionally been monopolized by banks. "When travelers need currency or a travel card, they often face exorbitant charges from their banks," she explained to TechCrunch. With a focus on filling these voids, Revolut has been preparing for its entry into the Indian market since 2021. Their acquisition of Arvog Forex in 2022 was a strategic move to secure a license for offering remittance and multi-currency account services in India. Earlier this year, Revolut obtained a prepaid payment instrument (PPI) license from the Reserve Bank of India, enabling it to issue prepaid cards and support digital wallets, while also integrating with the government-backed Unified Payments Interface (UPI). With these regulatory approvals, Revolut is poised to compete not only with traditional banks but also with existing fintech companies. Targeting over 150 million digitally savvy Indians aged 25 to 45, Revolut aims to onboard approximately 20 million users by 2030 and facilitate transactions totaling at least $7 billion. Chatterjee believes that the PPI license allows them to create a unique customer experience, differentiating them from competitors that depend on bank collaborations. Revolut will provide Indian users with a prepaid wallet supporting UPI, its own UPI handles, a domestic Visa card, and an international multi-currency Visa card. The platform will also offer specialized accounts for children and teenagers linked to their parents' profiles, a subscription model, and budgeting tools to enhance spending awareness. With regulatory permissions to facilitate both domestic and international transactions, Revolut is set to enable same-day remittances from India through a local bank partner. Unlike many Indian fintech competitors, which often employ minimal know-your-customer (KYC) checks for quick user onboarding, Revolut will implement full-KYC procedures. This includes verifying users against global sanctions lists to attract serious customers willing to complete a comprehensive onboarding process. Chatterjee pointed out that potential users will be more likely to engage with the product if they undergo thorough verification, stating, "This full KYC onboarding will be our customer metric." She remarked on the importance of measuring success not just by user numbers but by user engagement and profitability. In comparison to other fintechs boasting millions of customers, Revolut's global footprint encompasses 65 million customers across 39 countries, generating over $4 billion in transactions and achieving significant profitability. As Revolut gears up for its launch, it currently has a waitlist of over 350,000 potential users in India, which it plans to begin onboarding before fully opening its app to new users. The timeline for this launch is contingent upon clearing the waitlist and completing necessary KYC and anti-money laundering checks. The company is also exploring partnerships beyond Visa, including the Indian government's RuPay, to diversify payment options. With an initial investment of $45 million, Revolut is localizing its tech stack to comply with India's data sovereignty regulations and plans to invest further as operations commence. Of its 10,000 global employees, around 3,500 are already based in India, marking the country as its largest workforce, surpassing even that of the U.K. However, as Revolut prepares to enter the Indian market, it will face competition from established players like Niyo, Scapia, Fi, and BookMyForex in the growing cross-border and remittance sectors.