Revolut Targets Brazil 60b Abroad For Business Growth
By enhancing app usability and expanding its service range, Revolut aims to tap into this substantial market opportunity.
Competing against established banks and fintechs, Revolut’s strategy leverages its global operational scale and commitment to exceptional user experience, offering a consistent spread on currency exchanges favorable to clients with smaller transactions. The firm identifies three primary customer profiles in Brazil: those planning foreign travel, earning income abroad, and engaging in peer-to-peer remittances, particularly targeting the segment of Brazilians traveling for extended periods who traditionally rely on cash.
Despite a broader and more diverse user base than anticipated, primarily in Brazil’s Southeast and South, and a surprising trend towards euro conversions, Revolut remains focused on financially sustainable growth. The company plans to double its Brazilian team by the end of 2023 and introduce new features in 2024, including expanded currency exchange options and streamlined document verification processes.
While some functionalities, like a marketplace for foreign currency products and local offerings through an SCD license, remain on the horizon, Revolut continues to provide crypto-asset services, albeit with demand not exceeding expectations. The fintech’s approach in Brazil is one of cautious growth, prioritizing products with positive gross margins and superior customer experience over credit-based offerings.
Globally, Revolut’s financial health is robust, with $1.1 billion in 2022 revenue and projected double-digit net profit margins in 2023. This global success underpins its Brazilian strategy, promising to support further expansion and potential introduction of new financial products in the market. With plans to extend its presence to Chile and enhance its global customer base, Revolut’s strategic moves in Brazil reflect its broader ambition for sustained growth and market penetration.
