British financial technology giant Revolut, co-founded by Ukrainian Vlad Yatsenko, has begun a beta test of its product in Ukraine. It is currently available to the first group of test users.
British financial technology giant Revolut, co-founded by Ukrainian Vlad Yatsenko, has begun a beta test of its product in Ukraine. It is currently available to the first group of test users.
So far, Revolut is available only to a limited group of test users who can make international transfers without commissions, issue a virtual card, etc., writes Forbes.
“While we do not comment on expansion plans until the product is ready, we invite Ukrainians to download the Revolut app and join the waiting list to receive notifications when Revolut services become available in Ukraine,” the company told the publication.
Revolut did not inform the National Bank about entering the Ukrainian market, the institution's press service reported.
This year's beta test opens up the possibility to operate in over 30 currencies, make international transfers without commissions, issue a virtual card that works in over 150 countries, and top up your account from currency cards in dollars or euros. Top up from hryvnia cards is not possible due to NBU restrictions.
It is unlikely that Revolut will work with hryvnia cards, for example, salary cards or cards for sole proprietors, believes Mykhailo Demkiv, a financial analyst at ICU Group. Clients in Ukraine will be able to open cards only in foreign currency — primarily in dollars and euros, he suggests.
“Ukrainians will be able to convert currency at their bank and transfer it to an account in Revolut,” says Demkiv. “This will help them withdraw funds abroad and keep them there in currency.” Such an option will, in particular, simplify replenishment of brokerage accounts abroad, he adds.
Competition in Ukraine will primarily be felt by other cross-border transfer services, such as Wise, says Pavlo Pedenko, former product manager at Wise and co-founder of Mathema.me.
Neobank can make good money on cross-border transfers, because there are about 6 million Ukrainians abroad, says one of the Ukrainian bankers.
Revolut has a Lithuanian license and can operate in the EU. To enter the Ukrainian market, the neobank will need permission from the NBU, the National Bank said in a written comment. “Financial services are provided exclusively with an appropriate license,” the NBU noted. “Violation of such procedures will require an appropriate response from the NBU.”
What conditions Revolut will need to fulfill depends on the company's operating format and the list of its services.
Another advantage of Revolut is its cryptocurrency buying/selling services. But to launch such a service in Ukraine, legislative changes are needed, according to Kyrylo Khomyakov, regional head of Binance in Central and Eastern Europe, Central Asia and Africa, and Vadym Grusha, CEO of Trustee Plus.
Verification of new users from Ukraine takes place through the state application "Diya".
It was previously reported that the Revolut application was localized into Ukrainian.
