Following on the heels of yesterday’s announcement that it will be applying for a US banking license, Revolut confirmed last night that it is launching its services in Russia. To do so, the English challenger bank has formed a partnership with QIWI, a financial technology firm that works extensively in Russia and other former Soviet states.

In many ways, QIWI and Revolut are natural partners. QIWI provides payment solutions that allow users to make physical, online, and mobile Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. The company also provides prepaid Visa cards through QIWI Bank.

It is QIWI Bank that will be the focal point of the new partnership. QIWI Group has open access application programming interfaces (APIs) connected to the bank and it will grant Revolut access to them. This will enable Revolut to make use of QIWI Bank’s infrastructure, including its card issuance, identity protection, and payment processing capabilities.

Back to basics

The launch will mean that Russians now have access to the services that enabled Revolut to take off in the UK. A mobile application and a multi-currency Visa card that allows users to make payments, money and FX transfers in 130 currencies, along with international cash withdrawals, without the traditionally extortionate fees applied by banks.

Revolut already has ties to Russia as a large segment of its technological development team is based there. Nikolay Storonsky, one of the firm’s co-founders, was also born there

Perhaps as a result of this, some Russians are already familiar with the brand. Russians will also be happy to have a new firm countering its current market for money transfers and currency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term which is expensive and inefficient.

This combination of brand familiarity and poor competition means Revolut’s Head of Russia, Bogdan Uzbekov, felt comfortable enough to estimate that his firm would have over a million Russian users within the next two years. Given the firm’s success in the UK thus far, this would not be a surprise.