According to Bloomberg Business, Revolut Ltd. is in talks to acquire the Turkish digital bank FUPS to launch its services in Turkey, though no final decision has been made. The deal would need approval from Turkey’s banking regulator, the BDDK. Revolut, led by billionaire Nik Storonsky, boasts about 70 million global users and was last valued at a staggering $75 billion in November. FUPS is a relatively small player, having received its banking license in 2022 with founding capital of 1.5 billion liras (about $81 million at the time) and employing just 60 people as of September. In unrelated regulatory news, China has just unveiled broad new e-commerce rules that ban major platforms, including Alibaba Group Holding Ltd., from coercing online merchants into promotions, with the guidelines taking effect in February. This news pushed Alibaba’s shares down as much as 4.2% in Hong Kong trading.
Revolut’s Global Game
This potential FUPS acquisition is a classic Revolut move. They’re a behemoth with a $75 billion valuation, and they need to keep growing to justify it. Entering a market like Turkey through an acquisition of a licensed entity is way faster than trying to build from scratch or secure a license themselves. It’s a shortcut. FUPS might be tiny, but that license is the golden ticket. The real question is whether Revolut’s model—which works so well in Europe—can translate seamlessly into Turkey’s unique financial landscape. The regulatory hurdle with the BDDK is non-trivial, but buying an existing bank probably gives them a better shot than going it alone.
China’s Regulatory Hammer
Here’s the thing about China’s new rules: they’re not coming out of nowhere. Beijing has been watching this price war for years, especially in areas like meal delivery where Alibaba, Meituan, and JD.com have been burning billions on subsidies. The government is basically saying, “Enough.” They’re targeting specific “misbehaviors” like forcing merchants into exclusivity or deep discounts, which they argue hurts smaller players and ultimately destabilizes the market. It’s a direct response to what Meituan itself called “irrational competition” after it posted a loss. So, is this good for the industry? In the long run, maybe. It could force competition back to innovation and service rather than just who has the deepest pockets for discounts. But in the short term, it’s a major headwind for giants whose growth has been fueled by these aggressive tactics.
Winners and Losers
So who wins and who loses? For the Turkey play, if the deal goes through, Revolut wins big by getting a foothold in a new, sizable market. Turkish consumers potentially win with more competition. The loser? Probably other Turkish neobanks and incumbents who now have to face a well-funded global player. In China, the immediate losers are clear: Alibaba, JD.com, and Meituan. Their playbook just got a page ripped out. The winners could be the smaller merchants who were being squeezed by these platforms’ demands, and perhaps other e-commerce players who compete on factors other than price. But let’s be skeptical—these platforms are incredibly savvy. They’ll find new ways to compete, even within these stricter rules. The real impact will be on their profit margins, which were already getting hammered by the discounting frenzy.
The Bigger Picture
Both stories are about expansion and its limits. Revolut is in pure geographic expansion mode, buying its way into new territories. China’s tech giants, however, have hit a regulatory wall in their expansion of market *dominance*. The state is actively reshaping the competitive landscape, moving it from a wild west of subsidies to a more managed system. It’s a stark reminder that for big tech, whether in finance or e-commerce, growth isn’t just about having the best product or the most money. It’s increasingly about navigating complex regulatory environments. For Revolut, that test is Turkey’s BDDK. For Alibaba, it’s China’s State Administration for Market Regulation. The game is the same, only the referees are different.
