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Revolut’s fintech enlargement throughout Europe and globally is severely constraining the enjoying subject for European fintech founders. Making an attempt to construct a European-scale fintech — which suggests competing straight with Revolut — has develop into extraordinarily difficult, each from a product and advertising perspective.
Abstract
- Revolut closed the fintech door — crypto opens a brand new one: Competing head-on with a 65M-user super-app is a shedding sport, however Revolut’s relative neglect of crypto creates a uncommon, defensible opening.
- MiCA turned crypto from a threat right into a credential: Regulatory readability doesn’t simply unlock Europe — it boosts international belief, capital entry, and turns licenses into actual balance-sheet worth.
- Europe is completely priced for crypto scale: Cheaper expertise, rising stablecoin demand, and returning VC capital make crypto-finance Europe’s finest shot at constructing the subsequent pan-regional champion.
By September 2025, Revolut reached 65 million prospects worldwide, with 12 million within the UK alone. The corporate has additionally introduced a agency timeline for serving 100 million prospects, aiming to hit this milestone by mid-2027. Because of this, the window of alternative for European fintech growth is quickly narrowing. Entrepreneurs are left with solely two viable choices: both construct a super-niche venture, each by way of product and geography — suppose native fee companies — or exploit Revolut’s primary blind spot. Of their pursuit of banking licenses and regulatory relationships, they haven’t been growing crypto companies with adequate depth.
The latter mannequin provides a number of compelling benefits. Resulting from sure traits of the European startup scene, a crypto-finance venture has wonderful probabilities for international enlargement, or at a minimal, pan-European development.
Regulation
The rollout of Markets in Crypto-Property Regulation has given crypto initiatives a significant enhance — not as a result of it particularly permitted or prohibited something, however just because it established clear, comprehensible frameworks for what a venture should adjust to to remain compliant in Europe.
There’s an uncommon aspect impact to this regulation: MiCA enhances belief in crypto initiatives past Europe’s borders. For instance, in Latin American markets, it creates an especially constructive angle from regulators towards initiatives, so it turns into a notable inexperienced flag.
The workforce and economic system
In comparison with the US, hiring workers in Europe is considerably cheaper. Hiring one engineer within the US is equal to hiring two or three in Europe. It’s price noting that in Europe, you possibly can recruit the identical builders or product managers from Revolut itself, which positively is smart within the context of enlargement.
Cryptocurrency turnover is actively rising in Europe. Even our personal statistics affirm that customers are fascinated by receiving stablecoins to their accounts and utilizing them as a way of fee.
Funding
Whereas fintech attracted much less and fewer cash in recent times, the state of affairs is now altering.
“If 2024 was outlined by shortage, 2025 was outlined by bifurcation. The restoration in fundraising has been strong, with year-to-date figures reaching roughly €6.3 billion by September, surpassing 70% of 2024’s whole.”
A part of this cash is flowing into crypto, because the sector turns into institutionalized by way of MiCA. A license considerably capitalizes an organization, reworking it in traders’ eyes from an unproven idea right into a clearly understood fintech firm.
“With MiCA absolutely stay, we anticipate 2026 to be the yr of Stablecoin Rails. Main European banks are already piloting Euro-denominated stablecoins. The ‘wild west’ of crypto is over; the institutionalization of digital property is right here, and it’ll doubtless develop into the usual for cross-border B2B funds.”
What might be improved?
Regardless of being a significant profit, MiCa nonetheless hasn’t absolutely solved compliance. Present laws and regulators nonetheless stumble over crypto-specific points relating to how companies earn and spend cash in crypto kind. Furthermore, since we’re coping with an especially younger fintech instrument, tax incentives might facilitate its growth and development.
So in the event you’re feeling the stress from Revolut in your European fintech enterprise, we strongly advise taking a severe take a look at the crypto-finance market. Europe gives quite a few advantages to fintech companies that they will leverage for international enlargement.
