Monoup news digest: main updates from fintech industry
This week Monoup brings you the latest developments in the fintech industry and beyond. Subscribe to our Telegram channel to be the first to know the news and follow future releases with more detailed insights.
The long saga of Revolut obtaining a banking license in the UK has finally come to an end — on March 11, the regulator lifted all restrictions on the company, and its founder and manager, Nik Storonsky, announced that the transition to a full banking infrastructure will begin soon. Today, we’ll revisit Revolut’s journey and discuss what awaits customers in the future.
Another major fintech player, Discover payment network, is also moving toward new horizons. Under the management of its new owner, Capital One Bank, Discover cards will become the primary issuance focus, significantly increasing their market presence. What does this mean for the company?
Read on to find out.
Revolut Secures Banking License in the UK
After years of waiting, the fintech company has finally been approved to operate as a full-fledged bank in the UK without any restrictions. It’s no exaggeration to say that the path to this milestone was long and challenging for Revolut. The main obstacles were concerns over corporate governance, delays in publishing financial reports, and a complex shareholder structure that regulators demanded be simplified.
Recall that preliminary approval was granted back in July 2024, and until now, Revolut had been in the so-called “mobilization” phase, which typically lasts no longer than 12 months. In Revolut’s case, however, it dragged on for 19 months and was filled with various events.
In particular, the regulator was seriously concerned about growing level of fraud within the app and the company’s actual ability to manage such large volumes of transactions and customers. In the UK alone, Revolut’s customer base has already exceeded 13 million users, with many more worldwide. Despite these challenges, the company managed to bring its operations into compliance with regulatory standards. Even though, over this long period, many clients and industry representatives were concerned that the license might never be granted.
The regulator has now lifted all restrictions on the company, and Revolut will soon begin transitioning clients from its EMI (Electronic Money Institution) infrastructure to a full banking setup. New Revolut accounts will be opened as full-fledged bank accounts within days, while the transition for existing clients will take a couple of months.
Discover to Become the “Second American Express”
Capital One Bank, having acquired the Discover payment network, plans significant changes to its products, essentially aiming to build a new American Express model. American Express, in turn, acts as both an issuer and a card network, allowing it to independently set the rules of the game within its network and fully manage its products.
Capital One acquired Discover payment brand for $51.8 billion last year, and this year, 1,748 employees — including some top management representatives — will leave Discover. This means the card brand will now be managed by Capital One employees and fully absorbed by the bank.
In the near future, Capital One plans to issue all debit cards exclusively under the Discover network, with credit cards to follow. Over 25 million debit cards are already being transitioned, and new cards are being issued only under the Discover brand. The goal is to achieve significant savings on fees, as there will be no need to pay Visa or Mastercard — all transactions will be processed within an internal cycle.
While accepting Discover cards internationally can still be challenging — often they are not accepted for payments — they have nearly reached the level of other networks in the U.S., with almost 99% of merchants accepting them.
Ultimately, this will result in vertical integration: Discover will no longer be a standalone brand but will become part of the larger Capital One structure and a tool to challenge card monopolies.
HUMO Cards Enabled for Acquiring in Kazakhstan
Through its Uzbek subsidiary, Tenge Bank, and the national payment system HUMO, Halyk Bank has launched a service allowing HUMO cardholders to make purchases in Kazakhstan.
Uzbek clients will now be able to use their local cards in Kazakhstan’s largest terminal network without needing to exchange currency or withdraw cash. Payments will be processed in Uzbek sums with automatic real-time conversion. The service supports both physical and virtual cards, including contactless NFC payments.
Such bridges between local payment networks are gaining popularity as a way to save on fees and avoid processing payments through Visa and Mastercard networks, which profit from transaction fees. Additionally, these integrations allow transactions to bypass the U.S. dollar as an intermediary currency. This is why Asia and the Middle East are currently experiencing a period of consolidation for fragmented payment systems based on local currencies and direct exchange.
It’s important to note that both Visa and Mastercard are not just card brands but also powerful tech companies. Their services are used by global banks and fintech for payment processing, transfers, and crypto payments. This creates even greater dependence on these companies, what they use for an advantage.
That’s all the news we’ve gathered for you this week. Our Monoup experts also published a review of the Spayz payment system, which you can read here. Payment company operates in emerging markets and is well-acquainted with all the payment challenges that can arise there. Be the first to know all updates with Monoup!
