Interest.co.nz, Summarised by Centrist
European fintech firm Revolut is setting up in New Zealand, citing the Commerce Commission’s banking study on competitiveness as the reason for entering the market.
Revolut offers services such as currency exchange, peer-to-peer payments, and has been approved in Europe to offer cryptocurrency transfers.
While it has attracted a large number of global users, including in Ireland and Australia, the company faces criticism for its lack of banking licence and concerns about fraud protection.
Revolut is not a registered bank in New Zealand, but was granted a banking licence by its regulator in Lithuania. It has faced hurdles including an unflattering report from its financial auditor BDO, which said issues with Revolut’s IT practices meant much of its revenue “could not be verified with total satisfaction”.
In February, the Irish Times reported Ireland’s Financial Services and Pensions Ombudsman was dealing with a rising number of complaints related to Revolut and phishing scams.
Revolut aims to offer real-time payments and budgeting tools, particularly targeting young travellers as potential users.