Revolut’s India Launch: What the Fintech Plans, How It Will Work, and Why It Matters

A bold entry into a crowded but fast growing market

Revolut, the London born financial technology company, is set to launch a digital payments app in India later this year. The rollout will begin with 350,000 people on a waitlist, then open to wider public access. The company plans to enable both domestic and international payments from the start, using the Unified Payments Interface for local transactions and Visa for global card acceptance. Revolut will offer Indian customers a prepaid card and a digital wallet. It will operate under a prepaid payments instrument license granted by the Reserve Bank of India and a license that permits foreign exchange services in India.

The company has set an ambitious target. It aims to reach 20 million customers in India by 2030, with a focus on young, aspirational consumers who already use smartphones for most daily money tasks. India’s digital payments market is one of the largest in the world and has been shaped by real time systems such as UPI, a near universal QR code network in shops, and rapidly improving mobile internet. This launch is a central piece of Revolut’s global expansion, which has recently included product moves in the UK and growth plans in the Americas.

To meet India’s data sovereignty rules, Revolut has invested more than 40 million pounds to localize its technology and store required payments data in the country. India is the only market where Revolut has taken this step at such scale. The company already operates in more than 30 countries across Europe, Asia, and the Americas and has built a brand on app first money management, travel spending, and fee transparency. India is a major test of whether that model can stand out in a market defined by UPI and low cost payments.

What Revolut will offer in India

At launch, Indian users will get a digital wallet that supports UPI payments for domestic transactions and a prepaid card on the Visa network for global spending. The plan is to cover everyday payments in India and simplify international use for travel, education, and cross border expenses. Revolut’s foreign exchange capability, already a core feature in other markets, will sit alongside local payments, giving users a single app for rupee transactions and international currency needs.

Domestic payments through UPI

UPI lets people pay from one app to almost any bank account in India using a simple handle, phone number, or QR code. Revolut expects to support UPI through partnerships with banks and the National Payments Corporation of India. That would place the app in the same acceptance network used by neighborhood stores, e commerce checkouts, and peer to peer transfers. For customers, the benefit is reach. A Revolut wallet that can push or pull payments over UPI works with the rails that most merchants already accept.

International spending and forex

The Visa linked prepaid card extends usage outside India, where UPI is not the default. Revolut plans to combine that card with in app foreign exchange so users can spend abroad with clear rates and fees. A foreign exchange license in India allows the company to support travel cards, currency conversion, and cross border remittances within regulatory limits. Many Indian consumers currently juggle a UPI app for local purchases and a separate card for overseas spending. Revolut will try to merge those needs into one experience.

Over time, the company has indicated that the India app could include features popular in other markets, such as budgeting tools, card controls, savings vaults, prepaid card rewards, and supervised accounts for teens. The exact feature set will depend on local regulations and partnerships. Credit products, investment features, or crypto services would require additional permissions in India and may come later, if at all.

How UPI works and why it matters

UPI is an instant account to account payment system developed and operated by the National Payments Corporation of India. It lets people send or receive money across banks using a virtual payment address, a phone number, or a QR code. Transfers are near real time and typically free for consumers. Merchants benefit from simple acceptance, often through a printed QR code at the counter. UPI transactions run through partner banks and use two factor authentication, which has helped trust and adoption. You can read more about UPI at the NPCI information page here.

UPI changed the structure of payments in India by making interoperability the default. One app can reach accounts across many banks. The system now handles billions of transactions every month and has added variants such as UPI Lite for small value payments and support for credit on UPI through select networks. For a new entrant, plugging into UPI is essential. It provides instant reach, merchant acceptance, and a familiar customer flow. Revolut is choosing to build on this domestic public infrastructure rather than trying to push a closed loop system.

Licenses, data rules, and why compliance is front and center

A prepaid payments instrument license allows Revolut to issue a wallet and a prepaid card in India. Customers load money into the wallet, then use it for UPI transfers or card swipes. Wallets do not pay interest and come with know your customer rules that must be completed for higher limits. Full KYC wallets are interoperable with UPI under RBI rules, which means customers can use a Revolut wallet across the UPI network. Revolut also holds a license that permits foreign exchange services, which is required for travel cards, currency conversion, and certain outward remittances.

India requires payments data to be stored in the country. This data localization policy was introduced by the Reserve Bank of India to strengthen security, improve access for supervision, and ensure that authorized entities can respond quickly to lawful requests. Complying with this policy often means building separate technical stacks, a task that is costly for global apps. Revolut says it invested more than 40 million pounds to localize its infrastructure for India, making it the only market where it has gone this far.

• Prepaid wallets and cards can be issued under the PPI license, with usage limits linked to KYC status.
• Full KYC wallets are interoperable via UPI, bringing near universal merchant acceptance.
• Foreign exchange services require a separate permission, which enables travel cards and currency conversion.
• RBI’s data rules require storage of specified payments data within India.

The regulatory landscape in India has grown stricter as digital payments have scaled. High profile supervisory actions against non bank payment firms in recent years have reinforced a focus on data security, operational resilience, and KYC. Revolut will need to maintain compliance across consumer onboarding, transaction monitoring, and data handling to avoid service interruptions.

The competition Revolut will face

India’s digital payments market has heavyweight players already embedded in daily life. PhonePe and Google Pay dominate UPI volumes, while Paytm remains a widely recognized brand across wallets, merchant acceptance, and services. Banks also promote their own UPI apps and issue travel friendly forex cards. Newer consumer finance brands offer slick interfaces, rewards, and lifestyle features. Many of these services ride on the same rails that Revolut is joining, especially UPI and Visa or RuPay cards.

Revolut will try to differentiate on two fronts. First, it will lean on an all in one app that blends domestic UPI payments with a transparent international spending product. Second, it will position itself as a global finance companion for young consumers who travel, study, freelance with overseas clients, or shop on international sites. In other countries, Revolut built mindshare by making foreign currency spending predictable, with instant alerts, competitive exchange rates, and robust card controls. If it can deliver the same clarity in India, the company could carve out a niche even in a crowded field.

The challenge is cost and trust. UPI payments do not typically charge consumers and merchant fees are low or zero for many transactions. That makes customer acquisition expensive, and monetization depends on services such as forex, subscriptions, premium cards, or value added features. Trust must be earned through reliable uptime, quick dispute resolution, and clear disclosures on fees and limits.

Why international features could appeal to Indian users

India sends large numbers of students and professionals abroad every year. Families fund education and living expenses in foreign currencies. Leisure travel is rising from major cities and second tier towns. Freelancers and founders increasingly work with clients outside India. These groups need simple, transparent tools for spending and moving money across borders. Revolut has targeted exactly this use case in many markets. It offers in app currency conversion, local currency balances in supported markets, and instant spend notifications that help users track costs in real time.

For an Indian traveler, a Visa prepaid card paired with a wallet can be easier to manage than cash or multiple bank cards. Users can convert currency ahead of a trip, lock a card in the app if it is misplaced, create virtual cards for online bookings, and export spending data for expense claims. A clear fee structure for forex conversion is a major selling point. If Revolut brings transparent rates and reliable support to India, it could find traction with students, travelers, and small businesses that pay for global services.

Cross border remittances from India are regulated and subject to limits under the Liberalised Remittance Scheme. Tax collection at source may apply for certain outward remittances. Within those rules, Revolut’s forex permissions would allow it to facilitate specific use cases such as travel, education fees, and approved transfers. UPI itself is mostly domestic today, although acceptance partnerships in places such as Singapore and the United Arab Emirates are growing. The Visa network fills most of the international gap for card based spending.

Execution challenges to watch

Acquiring 20 million customers in a mature market will take sustained investment in product, marketing, and support. Revolut must ensure smooth onboarding with fast KYC, avoid payment declines at merchants, and deliver responsive help when issues arise. Any recurring friction on UPI payments or card acceptance would undermine the brand quickly. The company also needs bank partners for UPI. As a third party app, it will rely on those partners for switching transactions, which makes uptime and coordination essential.

Revenue will rely on a mix of streams. These include interchange on card transactions, foreign exchange margins, paid tiers that bundle premium travel benefits, and possibly merchant acquiring or bill payment features later. UPI does not provide large direct fees, so the unit economics depend on keeping service costs low while convincing power users to upgrade. Competitors already offer rewards and cashbacks. Revolut has to persuade customers that exchange rates, controls, and global reach outweigh short term incentives elsewhere.

The regulatory environment will remain a factor. India has tightened licensing and data standards for payment firms. Rule changes around wallets, credit on UPI, or cross border flows can shift product design. Revolut’s decision to localize data and tech is meant to reduce policy risk, but it will still need to adapt as guidelines evolve.

Timeline and what Indian users should expect

The initial rollout to the 350,000 person waitlist is planned for later this year, followed by general availability. New users can expect to complete KYC to unlock full limits, receive a digital wallet, and activate a Visa prepaid card for domestic and international use. UPI payments should work with standard handles and QR codes once partner integrations are live. International spending and currency conversion will follow the terms of Revolut’s forex permissions and Indian regulations.

Features common in other Revolut markets are likely to arrive in phases. Budgeting and analytics, robust security controls like instant card freeze, dynamic CVV for online payments, and rewards on prepaid cards could be part of the roadmap. Products that require separate licenses in India, such as credit or investments, would depend on regulatory approvals and partnerships. The company has explored new moves globally, including a credit card launch in the UK and potential expansion of its US footprint. India is a key pillar in that growth plan, with a local leadership team led by Paroma Chatterjee and an infrastructure built to meet RBI and NPCI standards.

What to Know

• Revolut will launch a digital payments app in India later this year, starting with 350,000 waitlisted users.
• Indian customers will get a UPI enabled wallet for domestic payments and a Visa linked prepaid card for international spending.
• The company will operate under a prepaid payments instrument license and also holds a license that permits foreign exchange services.
• Revolut aims to reach 20 million customers in India by 2030, targeting young, aspirational users.
• More than 40 million pounds has been invested to localize technology and comply with India’s data localization rules.
• Competition will be intense, with PhonePe, Google Pay, and Paytm entrenched in UPI and banks offering travel friendly forex cards.
• Monetization will depend on forex, card interchange, paid tiers, and value added features, since UPI is low fee for consumers.
• Rollout will be phased, with feature expansion tied to regulatory permissions and partnerships.