Will Revolut’s UAE launch mean cheaper remittances and faster money transfers?

Traditional exchange houses and banks will have to evolve as customer service standards shift, experts say

Revolut has received initial approval from the UAE Central Bank to operate in the Emirates. AFP

The UK-based financial technology company Revolut’s entry into the UAE is expected to lower remittance fees, speed up money transfers, raise the bar of digital financial services and improve customer service standards in the banking sector, according to experts.

Earlier this week, the neobank, which has its headquarters in London, received initial approval from the UAE Central Bank to operate in the Emirates as it expands operations.

Waqas Umer, a 32-year-old Revolut UK customer who moved to Dubai in July, opened a Revolut account in 2019 and started using the platform for currency exchange.

“For example, if I wanted to make payments in US dollars or euros, Revolut offered the best exchange rate. They later acquired a banking licence in the UK, started providing crypto services and rolled out more currencies. They allow customers to keep multiple currencies within a single account,” says Mr Umer, who works as a senior finance manager in Dubai.

“If you want to make a payment in UAE dirhams, it's better to do it from your Revolut account, rather than transferring it to a local UAE bank account. However, you would lose out on benefits that traditional banks in the UAE offer, such as cashbacks. But if you're new to the UAE and don't have a bank account or can't get a credit card, Revolut is good.”

The ability to open a Revolut account without visiting a branch and the option to send money to other Revolut users through their mobile number are also positives, Mr Umer says.

Another customer, Hamza Abdurrahman, started using Revolut because of the “super low” FX rates. In 2017, the company was the first to offer a multi-currency wallet that could be linked with Apple Pay or a physical card, he says.

Waqas Umer is a Revolut UK customer and initially used the platform for currency exchange. Photo: Waqas Umer

“Revolut is intuitive and easy to use. It's convenient and affordable to send payments through Revolut. I am so happy that they are finally opening here,” he says. “Until 2020, I used Revolut only when travelling. These days I use it monthly to make cross-border payments.”

Home to large expatriate populations from countries including India, the Philippines, Egypt and Pakistan, the UAE recorded outward personal remittances worth Dh183 billion ($49.8 billion) in 2024, up from Dh169.2 billion the previous year, according to the UAE Central Bank.

A Visa survey of 44,000 remittance senders and receivers across 20 countries released on Wednesday found that digital apps are becoming a preferred method for people in the UAE to send money abroad. Revolut was founded in 2015 by Nikolay Storonsky, and has more than 60 million customers around the world but no physical branches.

The all-in-one financial super app started out by offering a prepaid debit card with no foreign transaction fees, but its services now include multi-currency accounts, international money transfers, cryptocurrency and stock trading, as well as bill-paying and budgeting tools.

Calling Revolut’s UAE launch a “welcome catalyst”, Carol Glynn, founder of Conscious Finance Coaching, says increased competition is a good thing that will “hopefully” improve the banking options available to residents.

“Traditional exchange houses and banks rely on legacy infrastructures that often involve higher costs, opaque fee structures and slower transfers. In countries where Revolut is already operating, it offers real-time insight into exchange rates, low or no hidden fees and instant Revolut-to-Revolut transfers, which are often free, too,” she explains.

“That said, I don't see it being an overnight shift in how residents remit or manage their money. Many customers will still value physical outlets, cash services or tailored local support – areas where traditional players still have a strong hold. What's more likely is an acceleration and shift of customer service standards: incumbents will have to evolve, improve transparency and match the digital convenience that Revolut introduces.”

It could result in greater transparency (no hidden fees, clearer and better exchange rates), speed (near-instant transfers and notifications), convenience (all tools in one app) and inclusive innovation (pushing the entire ecosystem of local banks and FinTechs to improve their offerings), she says.

Steve Cronin, a financial independence coach and founder of DeadSimpleSaving.com, says it's great to see more choice coming to the UAE. “You should never do a currency exchange using your bank without checking the exchange rate and fees carefully,” Mr Cronin says.

“If you are sending a small amount, check the fees. If you are sending a large amount, shop around for the best exchange rate, as you could save hundreds or thousands of dirhams.”

Revolut has more than 60 million customers around the world. Bloomberg

Caution still key

However, Blair Hoover, founder of advisory Choose Your Own Finance, warns that Revolut has a history of poor customer service, accounts frozen “for no apparent reason”, and even account closures. In 2024, Revolut customers in the UK submitted more fraud claims than the customers of any other bank, according to the UK financial ombudsman, she says.

“When it comes to financial services, trust is everything. Revolut is a relatively new player that's had a somewhat rocky start in building trust over its first 10 years. However, given the usefulness of competitive currency transfer rates, there's still a place for Revolut, even with these security concerns,” she says.

“I'm hoping that Revolut succeeds – as a small-business owner, I would greatly benefit from being able to receive local money transfers from clients across the world. However, I won't be relying on Revolut as my primary bank any time soon.”

Urging caution, Ms Hoover warns users to not keep large balances in their Revolut accounts, and not to depend on it as their primary bank. Always have a secure back-up for holding your funds, she says.

Also, Revolut still does not offer Sharia-compliant offerings, and without a full banking licence, it can’t yet cover everyday needs like salary deposits or credit, according to Ali Nanji, regional sales director for the Middle East at Backbase, a banking software FinTech. However, Revolut’s arrival is a “wake-up call” that shows the appetite for modern, digital experiences, he says.

I don't see Revolut bringing an overnight change in how residents remit or manage their money

Carol Glynn,
founder, Conscious Finance Coaching

“This is where local and regional banks can win. If they can blend the best of Revolut-style digital journeys with their built-in strengths – regulatory alignment, local infrastructure and Islamic banking expertise – the value proposition is unbeatable,” Mr Nanji recommends.

Financial innovation must walk hand-in-hand with oversight, says Naveed Akhter, director of audit at Baker Tilly UAE, an international consulting and public accounting network. Regulators will rightly insist on rigorous standards in compliance, anti-money laundering and consumer protection.

Equally, trust and education will be vital if app-based platforms are to gain traction beyond the tech-savvy, especially among lower-income groups who still favour the reassurance of a counter and a receipt, he adds.

Rajiv Raipancholia, chief executive and managing director of Orient Exchange, says traditional remittance providers have to use all "emerging opportunities" to upgrade their offerings.

"A brick-and-mortar model exchange house should have FinTech capabilities, which would lead to low-cost transactions. The FinTech market is constantly evolving and customers are looking for cheaper, faster and more inclusive cross-border payments," he suggests.