Context:
UK-based fintech giant Revolut has received final approval from the Reserve Bank of India (RBI) in April 2025 to operate as a Prepaid Payment Instruments (PPI) issuer. This license enables Revolut to offer digital wallets, prepaid cards, and UPI-based payment services in India.
Key Features of the Approval
- PPI License: Allows Revolut to issue mobile wallets and prepaid instruments.
- UPI Integration: Users can now perform instant fund transfers, merchant payments, and peer-to-peer transactions using UPI through Revolut’s app.
- AD-II License: Already held by Revolut India, this allows multi-currency forex cards and cross-border remittance services.
Strategic Impact
- Competitive Entry: Revolut is now positioned to compete with India’s top fintech players like PhonePe, Google Pay, and Paytm.
- Target Audience: Focus will be on India’s top 10–15% consumers—tech-savvy, frequent travelers seeking integrated domestic and international payment solutions.
- Localization + Global Expertise: Revolut plans to combine global fintech innovation with India-specific services to enhance user convenience.
Market Significance:
- India’s Digital Payments Market: Estimated to reach $2.1 trillion by 2030.
- Revolut’s Global Footprint:
- 50+ million users in 38 countries.
- Valued at $45 billion in 2024.
- Aims to double user base to 100 million globally.
Broader Implications:
- The approval reflects the RBI’s confidence in Revolut’s compliance and innovation potential.
- Enhances India’s financial inclusion goals and push toward a cashless economy.
- Features like low-cost international remittances, real-time expense tracking, and UPI-enabled payments position Revolut as a disruptive entrant in India’s fintech space.
