The new banking licence will allow its customers to start depositing their salaries, which will be protected up to €100,000 (approximately £90,000) under the European Deposit Insurance Scheme.
Revolut will also begin to work on offering overdrafts, personal and business loans at competitive rates to traditional high street lenders.
Nik Storonsky, founder and CEO of Revolut, said: “With the banking licence now secured, commission-free stock trading progressing well and five new international markets at final stages of launch, we are living up to our reputation as the Amazon of banking.
“Our vision is simple: one app with tens of millions of users, where you can manage every aspect of your financial life with the best value and technology.
“Retail and business customers will be able to apply for a loan in just two minutes from within the app, and then have the money in their account almost instantly. We’ll remove the bureaucratic process and come in cheaper than traditional lenders.”
Revolut is also planning to expand beyond Europe, with the United States, Canada, Singapore, Japan, Australia and New Zealand all expected to launch in early 2019.
Global expansion will enable Revolut customers in the UK and Europe to receive local account details in all new markets, and send free and instant money transfers to these markets.