One of the most recognized UK challenger banks, Revolut, is exiting the Canadian market after launching the beta version almost a year ago.
The firm officially terminated its services for beta users from March 15, 2021, an official email from Revolut acquired by BetaKit indicates.
The firm that boosts almost 15 million users across its different markets will gradually withdraw various Canadian services.
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As of March 29, account top-ups will not be available, with physical card ordering ending by April 12. All accounts will no longer be accessible from May 15.
Revolut hinted that it might make a comeback to the Canadian market while promising a smooth transition.
“This has been a difficult decision, but we’ll do everything we can to make this process as smooth as possible for you. We really appreciate your support and trust as we work on our global expansion, and we hope to be able to return to Canada in the future,” said Revolut.
Although the platform has not issued the main reason for exiting the market, a Twitter post states it could not offer the services it hoped for.
“We’d hoped to be able to bring Canada the full Revolut service, but that is not possible at the moment. We think it’s in the best interests of our customers to pause for now, and we hope in the future we’ll be able to return to Canada when we can offer the full suite of Revolut services,” said a Revolut spokesperson.
Canada’s challenging market
Since unveiling the app’s beta version, Revout’s official launch in Canada never materialized. The launch was potentially hampered by several factors, including the nature of Canadian banking licenses that are deemed challenging for new entrants.
Furthermore, Revolut is facing competition from Canada’s firm Wealthsimple. The fintech startup has established itself as a local alternative to traditional banking. Wealthsimple product portfolio of Trading, Crypto, and Cash offer direct competition to Revolut.
Amid the Canadian market exit, Revolut is still expanding after acquiring a license to offer banking services in over ten European countries.
The bank is also applying for a banking license in the UK after receiving approval from Lithuanian authorities.
