Revolut Targets Turkey With £80m FUPS Deal as $75bn Fintech Expands Abroad

Jan 14, 2026 - 01:00

Europe’s most valuable fintech in talks to acquire Turkish digital bank FUPS, seeking regulatory fast-track into £15 billion payments market with 85 million potential smartphone banking customers

Revolut is in advanced discussions to acquire FUPS, a Turkish digital bank, marking the London-based fintech giant’s latest move in an aggressive global expansion strategy that has propelled the company to a $75 billion valuation. The potential acquisition would provide Revolut with an established foothold in Turkey’s rapidly evolving financial technology sector, bypassing lengthy licensing processes that typically delay market entry by years.

No final agreement has been reached and the talks could still collapse without a transaction, according to sources familiar with the matter. Any deal would require approval from Turkey’s Banking Regulation and Supervision Agency, known locally as BDDK. Neither Revolut nor FUPS provided comment on the negotiations, with a Revolut spokesperson declining to address “market rumours or speculation.”

The Turkish Digital Banking Opportunity

Turkey represents an increasingly attractive market for international fintech expansion, combining high mobile penetration with growing demand for digital financial solutions amid persistent economic volatility. The country’s fintech payments ecosystem is valued at approximately $15 billion, driven by surging e-commerce activity and accelerating adoption of cashless transactions among its predominantly young, tech-savvy population.

Smartphone penetration reached 85% in 2025, creating a potential customer base exceeding 70 million users comfortable with mobile financial services. Monthly card payment volumes hit TRY 2.21 trillion in 2025, while online card payments surpassed TRY 650 billion—reflecting Turkey’s dramatic shift toward digital-first payment systems that has intensified following the government’s Digital Turkey Project and substantial investment in payment infrastructure.

Turkey ranks fifth globally for credit card transaction volume, with 117.8 million cards in circulation generating extensive digital financial activity. This positions the country as a regional leader bridging Europe, Asia, and the Middle East—a strategic gateway for digital payment providers seeking to establish operations across multiple high-growth markets simultaneously.

FUPS: The Regulatory Gateway

FUPS operates under the Lydians brand as an electronic money institution and payment service provider. The bank received its full digital banking license in 2022 under Turkey’s branchless banking framework—regulatory architecture specifically designed to enable fully digital financial service providers without physical branch networks. FUPS launched with founding capital of 1.5 billion lira, worth approximately $81 million at the time, and currently employs around 60 people according to Turkish Banks Association data.

For Revolut, FUPS represents primarily a regulatory acquisition rather than a technology or customer base play. The digital banking license provides immediate authorization to offer financial services within Turkey’s complex regulatory environment—a substantial advantage given that securing new banking licenses in emerging markets typically requires multi-year application processes involving extensive documentation, capital requirements, and regulatory scrutiny.

Turkey’s Banking Regulation and Supervision Agency has granted digital banking licenses to just five institutions since introducing the framework in 2022: Hayat Katılım, Kasa Katılım, T.O.M. Katılım, FUPS Bank, and Ziraat Dinamik. This limited competition among fully digital banks creates opportunity for established international players with proven technology platforms and substantial capital resources to capture significant market share rapidly.

Revolut’s Emerging Markets Strategy

The Turkish acquisition discussions represent the latest step in Revolut’s systematic expansion into emerging markets following its dominance in European fintech. Led by billionaire founder Nikolay Storonsky, the company serves approximately 70 million customers worldwide with a comprehensive suite of services spanning multi-currency accounts, cryptocurrency trading, stock investing platforms, and travel insurance—competing directly with traditional banks while offering superior digital experiences and lower fees.

Revolut secured a banking license in Mexico in 2025 and has been actively pursuing opportunities in Argentina, Israel, and China. The company entered Argentina in June 2025 by purchasing Banco Cetelem’s local banking license from BNP Paribas, acquiring approximately $6.4 million in assets and establishing immediate market presence. This acquisition playbook—targeting smaller licensed entities in strategic markets—appears to be Revolut’s preferred method for rapid international expansion while maintaining regulatory compliance.

In the United States, where Revolut’s business remains in growth phase, the company is “actively looking” at whether to acquire an American bank or apply for its own banking license. “Being a bank in every market we operate in is critical,” said US CEO Sid Jajodia in September 2025, articulating the strategic imperative driving Revolut’s global licensing push.

Competitive Dynamics and Strategic Execution

“Revolut’s potential entry into Turkey makes strategic sense, intensifying competition in a market where incumbents are already digitally advanced but still depend on branch networks,” said Tomasz Noetzel, senior industry analyst at Bloomberg Intelligence. “The deal’s strategic execution will be critical to differentiation, beyond price and user experience.”

Turkey’s established banks have invested heavily in digital retail banking infrastructure, creating sophisticated mobile banking applications with high adoption rates. However, these institutions remain constrained by legacy technology systems, extensive branch networks requiring ongoing maintenance costs, and organizational cultures resistant to the rapid experimentation that characterizes successful fintech operations. Revolut’s advantage lies in its entirely digital architecture, allowing significantly lower operational costs and faster feature deployment cycles.

The November funding round that valued Revolut at $75 billion—a 67% increase from its $45 billion valuation the previous year—attracted investment from Nvidia’s venture capital arm alongside traditional financial investors. This backing provides substantial capital reserves to fund international expansion while absorbing regulatory compliance costs and initial customer acquisition expenses in new markets.

Success in Turkey will depend on Revolut’s ability to navigate local market nuances—including currency volatility, inflation concerns, and competition from domestic fintech players like İyzico and Papara who possess deep understanding of Turkish consumer behaviour and established merchant relationships. Differentiation will require compelling value propositions beyond standard digital banking features, potentially leveraging Revolut’s cryptocurrency capabilities and international money transfer infrastructure to serve Turkey’s diaspora and cross-border commerce needs.