When Revolut announced on April 1st, 2024, that it had secured a banking license in Mexico, many in the fintech industry did a double-take. The timing felt almost too perfect—was this an elaborate April Fool's joke? After all, there had been virtually no rumors or speculation about the British neobank's Mexican banking application. But the announcement was real, marking the beginning of what would become a much longer and more complex journey than anyone anticipated.
The Unexpected License Approval
Revolut received its banking license from Mexico's National Banking and Securities Commission (CNBV) in April 2024, joining an increasingly competitive landscape of digital banks vying for market share in Latin America's second-largest economy. The license represented a significant milestone for the London-based fintech, which had been pursuing Mexican market entry since 2021 when it hired former RappiPay executive Juan Miguel Guerra as CEO for Mexico.
To secure the banking license, Revolut was required to provide starting capital of MXN 1.44 billion ($88 million), with the figure increasing to MXN 1.81 billion ($110 million) prior to launching operations. This substantial capital requirement underscores Mexico's rigorous approach to banking regulation, even as it welcomes digital innovation.
From License to Launch: A Bumpy Road
What seemed like a straightforward path to market has proven anything but simple. In early June 2024, Juan Guerra optimistically stated that Revolut was "a few months away from being able to get customers signed up." However, more than a year later, the company is still working through regulatory requirements.
Speaking at Finnosummit 2024, Guerra revealed that Revolut now hopes to launch operations in the first half of 2025, though he cautioned that the timeline could shift. The delays stem from the comprehensive regulatory audit that Mexican authorities must conduct on all of Revolut's systems—a process that has taken far longer than initially anticipated.
"We will complete it in the coming months," David Tirado, Revolut's VP of Global Business Development, told El Español-Invertia, suggesting that the regulatory review process has been more intensive than expected.
The Remittance Goldmine
Mexico's appeal to international fintechs is undeniable. Remittances to Mexico reached a record $63.3 billion in 2023, mostly from Mexican migrants living in the United States. This massive flow of cross-border payments represents a lucrative opportunity for any financial services company that can offer competitive rates and seamless user experience.
Revolut plans to initially launch with deposit accounts and international transfers, with Guerra noting that over 100,000 people are already on the waiting list to become customers. The company's primary selling point will be its signature offering: free international transfers, a proposition that has proven successful across its 38-country footprint.
However, Revolut faces unique challenges in Mexico's remittance market. The company must manage remittances "very carefully" due to risks posed by illicit profits from organized criminal organizations that often flow from drug cartel operations in the United States. This regulatory complexity adds another layer to an already intricate market entry process.
Fierce Competition Emerges
While Revolut has been navigating regulatory hurdles, competitors haven't been idle. The Mexican fintech landscape has become increasingly crowded, with several major players either launching or receiving approvals:
Nubank Takes the Lead: Nu Mexico received approval for its banking license from the CNBV in April 2025, becoming the first Popular Financial Society (SOFIPO) to successfully transform into a bank. With over 10 million customers already in Mexico and $4.5 billion in deposits by Q4 2024, Nubank has established a commanding presence while Revolut was still working through approvals.
Mercado Pago's Regional Strategy: While not directly competing in Mexico's banking license race, Mercado Pago has applied for a banking license in Argentina, with ambitions to become "the largest digital bank in Latin America." This regional approach demonstrates how major fintechs are pursuing different market entry strategies across Latin America.
Traditional Banks Respond: Spanish banks like BBVA and Santander, which dominate Mexico's banking sector with a combined market share of nearly 40%, aren't standing still. Santander launched its digital bank OpenBank in Mexico in February 2025, quickly attracting over 30,000 customers.
A Challenging Market Entry
Revolut's delayed launch highlights the complexities of entering Mexico's highly regulated banking sector. Unlike Brazil, where the company has been operating since May 2023, Mexico requires more extensive compliance procedures and capital commitments.
The timing couldn't be more challenging. While Revolut works through regulatory processes, competitors like Nubank have gained significant traction. Nubank's success in transitioning from a SOFIPO license to full banking status provides a roadmap that other fintechs can follow, potentially accelerating competition.
Regional Expansion Strategy
Mexico represents just one piece of Revolut's broader Latin American strategy. The company has confirmed that Colombia, Peru, and Argentina are "in the works" for future expansion, suggesting that lessons learned in Mexico will inform approaches across the region.
Revolut expects to invest more than $100 million in Mexico this year alone, demonstrating the company's commitment despite regulatory delays. This substantial investment indicates that Revolut views Latin America as a critical growth market, even as competition intensifies.
The Road Ahead
Revolut's Mexican journey illustrates both the opportunities and challenges facing international fintechs in Latin America. While the market potential is enormous—particularly in remittances and underbanked populations—regulatory complexity and established competition create significant barriers to entry.
The company's experience also highlights the importance of timing in fintech market entry. What began as a seemingly straightforward license application has evolved into a year-long regulatory marathon, during which competitors have gained valuable market positioning.
As Revolut finally approaches its Mexican launch, the fintech landscape it enters will be markedly different from the one it initially targeted. Success will require not just regulatory compliance, but innovative differentiation in an increasingly crowded market where traditional banks, established fintechs, and new entrants are all vying for the same customers.
The ultimate test will be whether Revolut's global fintech expertise and free international transfer proposition can overcome the first-mover advantages that competitors like Nubank have established during its extended regulatory journey.
Revolut's Mexican experience reflects broader challenges facing European neobanks attempting to expand into Latin American markets, where regulatory complexity and local competition create unique barriers to entry.
Revolut expects to launch operations in Mexico by the end of 2025, pending completion of regulatory audits.
