Revolut decides to leave Canada after not managing to exit beta since 2019.
This information comes from an email shared with Revolut Canada beta users that was obtained by BetaKit – a Canadian startup and tech news server.
In the email, Revolut stated it is “discontinuing [the] Revolut Canadian beta from March 15, 2021.” A Twitter comment from the company confirmed Revolut is closing its Canadian operations.
“This has been a difficult decision, but we’ll do everything we can to make this process as smooth as possible for you,” the email stated. “We really appreciate your support and trust as we work on our global expansion and we hope to be able to return to Canada in the future.”
“We’re very sorry to be announcing this today but have taken the difficult decision to discontinue our Canadian beta for now,” a spokesperson for Revolut Canada said in a statement to BetaKit when reached for comment.
Revolut has not managed to get a Canadian banking license, this restricted the company from the possibility of offering loans and pose a threat to the incumbent Canadian banks (Scotiabank, CIBC, TD Bank, BMO, and RBC) that dominate the market.
“Banking licenses in Canada are notoriously difficult for newcomer financial service providers to obtain,” BetaKit’s Meagan Simpson writes.
“The Canadian banking market is an oligarchy of five or six main banks. This, in addition to unfavourable regulations, makes it harder for local challenger-bank style startups as well, such as Koho. Revolut was seen as a competitor to companies like Toronto-based Koho.”
Revolut still operates successfully in the US, Australia, Europe and Japan with more expansion goals already set.
The company announced plans to introduce a remittance option to move money effortlessly from and to India. Revolut is in talks with the Reserve Bank of India, as well as other local banks and fin-tech startups for the launch.