Revolut Enters Peru: How a Banking License Will Shake Up Latin America's Remittance and Crypto Markets?

UK fintech giant Revolut has officially applied for a full banking license with the Peruvian financial regulators. This move is a key step for the company to deepen its market presence in Latin America. If approved, Revolut will become a licensed bank under Peruvian law, capable of offering a full range of banking services including deposits, loans, and foreign exchange.

Strategic Deployment

Revolut’s application for a banking license in Peru is part of its systematic expansion into the Latin American market. Headquartered in London, this fintech company currently serves over 70 million retail customers worldwide. Peru will become its fifth market in Latin America. Prior to this, Revolut has entered Mexico, Colombia, Brazil, and Argentina through licensing, establishing local entities, or acquisitions.

Choosing Peru reveals its business logic: according to World Bank data, the total personal remittances inflowing into Peru in 2024 are expected to reach $4.93 billion, making it an important external funding source for the country. Julian Labro, Revolut’s country manager in Peru, explicitly stated that this expansion aims to “increase market competition and improve the accessibility of financial services in the local market.”

Regulation and Competition

Obtaining a full banking license means Revolut’s operations in Peru will upgrade from simple payment or transfer services to a fully regulated financial institution. This transition requires Revolut to comply with anti-money laundering procedures, capital reserves, and customer protection standards equivalent to those of traditional banks. The approval process is currently underway, with regulators reviewing the company’s capital position, risk management, and governance protocols over several months before granting the license.

Peru’s fintech competitive landscape is rapidly evolving. Besides traditional banks, Revolut will face competition from regional fintech giants like Nubank and Mercado Pago. These local players are also actively integrating cryptocurrency services; for example, Mercado Pago has launched a stablecoin pegged to the US dollar in Brazil.

Market Transformation

Revolut’s arrival will directly impact Peru’s large and traditional remittance market. Traditional remittance networks rely on physical branches, with transfers typically taking 3 to 5 business days and incurring high fees. Digital payment platforms enable instant peer-to-peer transfers at significantly lower costs. This efficiency contrast is a key advantage for fintech companies like Revolut to penetrate the market.

The acceptance of fintech in Latin America is rapidly increasing. A Chainalysis report shows that from July 2022 to June 2025, the total cryptocurrency transaction volume in Latin America approaches $1.5 trillion. This indicates strong demand among regional users for new financial assets and payment methods. High smartphone penetration and a large unbanked population create fertile ground for digital financial growth.

Crypto Strategy

Revolut’s ambitions in Peru and Latin America go far beyond fiat remittances. Cryptocurrencies, especially stablecoins, are a core part of its strategy.

In October 2025, Revolut launched a 1:1 USD exchange feature for stablecoins, allowing users to directly convert USD into USDC and USDT. In the same year, the platform’s stablecoin payment volume is estimated to have increased by 156% year-over-year, reaching approximately $10.5 billion. This growth trend aligns with the overall crypto adoption in Latin America. The region’s demand for USD stablecoins is strong, often used for savings, hedging against local currency volatility, and cross-border payments.

Peru’s regulatory environment is also gradually adapting to this trend. Regulators are seeking to balance encouraging innovation with maintaining financial stability, providing clear operational frameworks for compliant crypto services.

Opportunities and Challenges

For global crypto exchanges like Gate, the expansion of mainstream fintech companies such as Revolut in Latin America holds multiple implications. It continues to educate the market, familiarizing a broader user base with digital assets as financial tools, thereby bringing incremental users into the crypto ecosystem.

Furthermore, the stablecoin payment scenarios promoted by platforms like Revolut help reinforce the practical value of mainstream stablecoins like USDT and USDC in payments and settlements, potentially indirectly boosting their liquidity and market position. Based on Gate’s data, as cases of traditional finance and crypto finance integration increase, market attention to related assets (such as compliant stablecoins and cross-border payment projects) periodically rises.

Of course, opportunities come with challenges. The entry of fintech giants also intensifies competition. With large user bases and comprehensive fiat on-ramps, they may have advantages in service convenience. The core strengths of specialized crypto trading platforms lie in asset selection depth, professional trading tools, and support for cutting-edge blockchain projects, forming barriers to differentiation.

The Peruvian financial regulators’ decision on approval has not yet been announced. Regardless of the outcome, Revolut’s application itself is a landmark event. Latin America has become a testing ground for fintech and crypto innovation. From Mexico to Argentina, from Brazil to Peru, the boundaries between digital banking and crypto wallets are increasingly blurred. As players like Revolut and Nubank continue to expand, a financial transformation driven by stablecoins and instant cross-border payments is reshaping the entire Latin American flow of funds.