Revolut’s US bet: A bank charter, a stablecoin pitch, and a graveyard of European challengers that tried before it

Revolut is doubling down on its attempt to become a major financial player in the U.S. market. The London-based fintech giant is currently pursuing a formal bank charter with the OCC and FDIC. For retailers and merchants, this move is significant because it marks a shift away from 'partner banking' toward a direct lending model. If successful, Revolut will be able to offer its own credit products, including Buy Now, Pay Later (BNPL) and personal loans, with more flexibility and lower overhead than fintechs that rely on third-party banks. This means more competition in the consumer lending space and potentially more aggressive financing offers for your customers. However, the road is difficult. Many European 'neobanks' have tried to crack the U.S. market and failed due to high customer acquisition costs and a fragmented regulatory landscape. Revolut is betting that its 'super-app' approach—combining banking, remittances, and even crypto—will provide enough value to keep users engaged. For merchants, a successful Revolut expansion could introduce a new pool of tech-savvy consumers looking for streamlined payment and credit options at the point of sale. Keep an eye on their progress, as a direct bank charter would allow them to compete head-to-head with established giants like Affirm and JPMorgan Chase.

Source: Tearsheet

← Return to the library· Submit a correction