I guess they'd need to apply for banking license to offer CC in every EU state and that would be an order of magnitude more expensive than Lithuania's banking license
I think that the true reason is another one: credit cards come with credit, which people can choose not to pay back. It is complicated to recover money from a person abroad, possibly having to sue them in every EU state.
https://www.revolut.com/en-LT/credit-cards/
I guess they'd need to apply for banking license to offer CC in every EU state and that would be an order of magnitude more expensive than Lithuania's banking license