Revolut Goes for $100 Million Bet in Mexico; Aims for Massive Remittances Market

UK-based fintech Revolut looks set to shake up Mexico’s financial landscape with a US$100 million investment.

The move aims to carve out a prominent position for Revolut in Mexico’s burgeoning financial services industry, with a keen focus on the country’s thriving remittances market.

Mexico’s remittances soared to unprecedented heights in 2023, reaching US$63.3 billion, predominantly fueled by inflows from migrant workers in the US.

Juan Miguel Guerra, Revolut’s CEO in Mexico, told Reuters that the investment will be directed towards bolstering staff and maintaining adequate financial reserves.

This strategic infusion of capital comes hot on the heels of Revolut’s recent acquisition of a pivotal banking license in Mexico, laying the groundwork for its expansive plans across Latin America.

Since its inception in 2015, Revolut has amassed a colossal global user base of 40 million. Mexico’s vast remittances market presents a compelling opportunity for the company.

Leveraging its newly acquired banking license, Revolut aims to streamline remittances processes and enhance accessibility to financial services for millions of Mexicans.

The fintech unicorn is also eyeing other Latin American countries, notably Brazil, where acquiring banking licenses is less cumbersome.

However, Revolut acknowledges the intricate challenges associated with managing remittances flows, including the risk of illicit funds.