Maltese Firms Boost Revolut’s B2B Growth

In a significant shift for the financial landscape, Maltese businesses are rapidly adopting Revolut as their go-to platform for transactions and financial management. The company, which launched in the UK in 2015, has experienced a fivefold increase in Maltese business customers over the past year. Monthly business-to-business (B2B) transactions in Malta reached a record €296 million by the start of September, surpassing even countries with much larger economies and populations. This article delves into the factors driving this growth, how it compares with other European nations, and what the future holds for Revolut in Malta.

B2B Transactions Set New Records in Malta

As of early September, Maltese businesses using Revolut for B2B transactions hit an all-time high of €296 million per month, a staggering figure for a country with just over 500,000 people. This growth marks a pivotal moment in Malta's financial sector, as the total value of inter-business transactions on Revolut equals that of Portugal, a country with a significantly larger economy.

Interestingly, Malta's B2B transaction volumes more than doubled those of Greece, a country with nearly 20 times the population. With €142 million in monthly B2B transactions in Greece, Malta's small but robust economy is punching above its weight, signaling a strong dependence on Revolut's services by local businesses.

Comparing Malta’s Growth to Major European Economies

Malta’s reliance on Revolut is not only notable compared to similar-sized countries but also stands out when measured against larger European economies. For instance, Maltese businesses transacted almost a third of the volume seen in France, where Revolut’s B2B transactions reached €860 million per month. At the same time, Maltese businesses processed 45% of the transaction volume seen in the Netherlands, where monthly transactions reached €660 million.

Southern European nations such as Italy, Spain, and Romania also demonstrated significant volumes, with €664 million, €557 million, and €345 million in B2B transactions, respectively. While Malta's figures may appear modest in comparison, the fact that such a small nation is even in the conversation with these larger economies highlights the island’s embrace of fintech solutions like Revolut.

Surge in Business Customers: Fivefold Increase in a Year

Revolut’s growth in Malta has been nothing short of extraordinary. Over the past year, the number of businesses using Revolut in Malta increased by five times, reflecting the platform's growing appeal to companies of all sizes. Revolut’s head of growth for Southern Europe, Ignacio Zunzunegui, attributed this surge to the platform’s convenience, flexibility, and its ability to offer streamlined financial services that appeal to businesses seeking efficiency.

Moreover, the number of individual retail customers in Malta also tripled since January, reinforcing the platform’s popularity across different sectors. Revolut's growth is not only reshaping the financial landscape for businesses but also for individual users, further embedding itself in the daily financial lives of the Maltese population.

The Role of Technology in Driving Adoption

The rapid adoption of Revolut in Malta can be linked to its innovative approach to payments. Features like the ability to pay using a phone number or a QR code have proven particularly attractive to businesses, allowing for quick, seamless, and contactless transactions. This technological edge has given Revolut a competitive advantage over traditional banking services, which can often feel slow and cumbersome in comparison.

One local banking source commented on the rise of Revolut, stating that the platform's success gives local banks “an opportunity to polish up and improve.” While traditional banks remain dominant, many businesses are turning to Revolut for specific services while keeping their existing bank accounts open. This hybrid approach suggests that while Revolut offers undeniable benefits, mainstream banks will likely maintain a role in the broader financial ecosystem.

The Introduction of Revolut Billpay in Malta

To further cement its position in Malta, Revolut recently introduced its accounting service, Revolut Billpay. This new feature is aimed at helping businesses streamline their finances by offering a more efficient way to manage and settle bills. By integrating bill payments directly into the platform, businesses can now enjoy a comprehensive suite of financial services, all within the Revolut ecosystem.

According to Ignacio Zunzunegui, Revolut sees “huge opportunity to grow” in Malta. The introduction of Billpay is just one of several initiatives aimed at capturing a larger share of the local market. As businesses continue to seek out digital solutions to manage their financial operations, Revolut's expansion into accounting services could mark the next phase of growth for the company in Malta.

Global Expansion and Revenue Growth

Revolut’s success in Malta is part of a broader global trend. Since its launch in 2015, the company has expanded to 38 countries and attracted over 45 million customers worldwide. According to Revolut's 2023 annual report, its global revenue has now reached €450 million, underscoring its rapid rise in the financial services sector.

The platform offers a wide range of services, including transactions in multiple currencies, physical and virtual payment cards, user-to-user payments, and cryptocurrency trading. Revolut’s diverse offerings have made it a go-to solution for individuals and businesses alike, as they seek flexibility and convenience in their financial transactions.

Revolut’s Future in Malta: What Lies Ahead?

While Revolut has not yet committed to offering personal loans in Malta, it has rolled out this service in several other European countries, including Poland, Lithuania, Ireland, Romania, and Spain. The company has indicated that Malta is on the roadmap for future developments, which could mean that local businesses and individuals will soon have access to an even wider range of financial products.

As Revolut continues to grow in Malta, it will likely face increased competition from traditional banks and other fintech providers. However, with its innovative features and expanding suite of services, Revolut is well-positioned to maintain its strong foothold in the Maltese market.

Conclusion

Revolut’s remarkable growth in Malta highlights the island's increasing reliance on digital financial solutions. With B2B transaction volumes soaring to record levels and a fivefold increase in business customers over the past year, it’s clear that Maltese businesses see Revolut as a vital tool for their operations. As the company continues to innovate and expand its offerings, the future looks promising for both Revolut and its growing customer base in Malta.

FAQs

What has been the growth of Revolut’s business customers in Malta?
Revolut has seen a fivefold increase in Maltese business customers in the last year.

How much are monthly B2B transactions in Malta on Revolut?
Monthly B2B transactions on Revolut in Malta reached €296 million by early September.

How does Malta's B2B transaction volume compare to other countries?
Malta's B2B transactions on Revolut are more than double those of Greece and equal to those of Portugal.

What new service did Revolut introduce in Malta for businesses?
Revolut introduced Revolut Billpay to help Maltese companies streamline their financial operations.

What features make Revolut attractive to businesses in Malta?
Features like payments via phone number or QR code have attracted Maltese businesses to Revolut.

Has Revolut expanded globally?
Yes, Revolut has expanded to 38 countries and has over 45 million customers worldwide.

How does Revolut’s B2B transaction volume in Malta compare to larger economies?
Malta’s B2B volume is about a third of that in France and 45% of The Netherlands.

What services does Revolut offer in addition to transactions?
Revolut offers services including multi-currency transactions, payment cards, cryptocurrency trading, and user-to-user payments.

Is Revolut planning to offer personal loans in Malta?
While Revolut has not set a timeline, personal loans in Malta are on its roadmap for future offerings.

What has been Revolut’s global revenue growth?
Revolut’s global revenue reached €450 million, according to its 2023 annual report.