Competitor Revolut Sets Sights on Expanding in Morocco, Bracing for Tussle Against Domestic Leader, Cash Plus
Revolut, a European fintech giant, is making a strategic move into Morocco's financial services market, aiming to challenge the dominance of local player, Cash Plus. This expansion forms part of Revolut's broader plans for the Middle East and North Africa (MENA) region, including the UAE and Saudi Arabia.
A Well-Established Local Ecosystem
Morocco's financial services market is a well-established local ecosystem, with Cash Plus holding a significant market share, particularly in remittance and payment services. The company offers over 100 services, including bill payments and digital wallets, and has processed more than MAD 100 billion (approximately $10.75 billion) in transactions and reported revenues of MAD 1.12 billion ($120.4 million) in 2024.
Navigating Regulatory Complexities
Revolut's entry into Morocco is not without challenges. The country's financial ecosystem is regulated with strict controls, such as the non-convertibility of the Moroccan dirham. This means that Revolut must either secure an Electronic Payment Institution (EPI) license, partner with a local bank, or eventually obtain a full digital banking (neobank) license.
To navigate these complexities, Revolut has appointed Amine Berrada, a former Uber executive, to lead its efforts in Morocco. Berrada will oversee the company's strategy and operations as it prepares to apply for a license from Morocco's central bank, Bank Al-Maghrib. However, Bank Al-Maghrib has a cautious and risk-averse approach to licensing new players in the financial sector, and no new foreign banking licenses have been issued in Morocco for over a decade.
Localizing Offerings and Challenging the Status Quo
To localize its offerings and effectively challenge Cash Plus's entrenched position, Revolut is building a lean local team (~60 employees) in Casablanca. This team will focus on compliance, customer acquisition, and adapting services to the regulatory context. Revolut also aims to introduce core digital financial services, including digital payments, foreign exchange (FX), and remittances, targeting Morocco's large diaspora and cross-border money transfer demand.
The Competitive Landscape
Despite these efforts, Revolut faces strong challenges from Cash Plus's vast local network, capital strength, and reputation. The local firm is confident in defending its market share, positioning itself as a "digital bank in all but name" with its M-Wallet app serving over 1 million users.
The competitive pressure in Morocco's financial sector is set to intensify due to major upcoming events like the 2030 FIFA World Cup and the 2025 Africa Cup of Nations. These events are expected to drive up demand for digital payments, e-commerce, and seamless cross-border financial services, making Morocco a critical test market for financial technology in North Africa.
As Revolut and Cash Plus compete, other foreign players have reportedly struggled to gain access to the Moroccan market. Kenyan mobile money giant M-PESA and Nigerian fintech unicorn Flutterwave are among those who have faced challenges. However, the success of companies that do manage to succeed in Morocco is likely to extend beyond its borders, making it a significant market for fintech players.
In summary, Revolut's entry into Morocco marks a strategic expansion into a competitive market dominated by Cash Plus in financial services like remittances and payments. The competition will hinge on Revolut’s ability to navigate regulatory complexities, localize offerings, and effectively challenge Cash Plus’s entrenched position through technology and diaspora-focused services.
- Revolut, in its quest to challenge the dominance of Cash Plus in Morocco's mobile money and payment services market, is planning to introduce core digital financial services such as digital payments, foreign exchange, and remittances, targeting Morocco's large diaspora and cross-border money transfer demand.
- The competitive landscape in Morocco's financial industry is set to become more dynamic as technology plays a significant role in adapting to regulatory complexities and localizing offerings, with Revolut, Cash Plus, and potential foreign players like M-PESA and Flutterwave vying for market dominance.
