Revolut, the London-based fintech startup, is considering registering for an Electronic Money (e-money) license in Luxembourg as the company prepares for the post-Brexit fallout next year.
Revolut is one the largest UK fintech startups, with over 3 million members worldwide using its e-wallet platform to spend money in the UK and abroad. The company operates in 32 countries across Europe and plans to expand into the US, Canada, Hong Kong, Singapore, Japan, Australia and New Zealand by the end of 2018. (See Revolut Hits 2M Users, Announces Investment Platform to Celebrate.)
However, with Brexit no longer merely a dot on the horizon, companies such as Revolut, with complex international agreements in Europe and beyond, have needed to think hard about how their products will operate come March 29, 2019. In Revolut's case, it is considering a range of options to counter the Brexit threat.
Revolut offers an e-wallet' to its customers, with an account being able to be set up in seconds from 32 countries. (Image: Revolut)
Chief among these is applying for an e-money license in the small European country of Luxembourg, where many countries choose to register business services due to its low tax rate and proximity to France, Germany and Belgium. A Revolut company spokesman told TechX365: "We are considering applying for an Electronic Money Licence in Luxembourg, but we want to make it clear that we have not yet formally applied."
Revolut was also keen to stress that it is keeping its headquarters in the UK, unless there are significant disadvantages post-Brexit that hinder this plan, such as not being able to attract top talent compared to European fintech startups, or an impact on its ability to do business in the EU. Revolut founder and CEO, Nik Storonsky, told TechX365: "London is our home and will continue to be one of the best places in the world to set up and run a fintech company."