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Business account
August 18, 2023

Online Business Account, a Great Alternative!

Setting up your own business is a real time-and-energy-consuming challenge. But many tools dedicated to professionals and set up to simplify day-to-day management exist on the Web. A business account is more than helpful in tracking payments and receipts. In some cases, having a separate or a dedicated business account can be mandatory. Find out more about the "bankless" business account, a solution offered by alternative institutions to traditional banks.

Traditional Banks vs. Online Payment Service Providers

Traditional banks, also called classic banks or banks with branches, have a long history.

Originally, these credit institutions had a monopoly on the provision of payment services. Now, other players can offer similar services.

Since the arrival of payment service providers and online banks in the 2000s, it is possible to open a business account without having to go to a traditional bank.

A payment service provider (aka PSP) is an entity whose activity is the provision of payment services, regulated under the European Payment Services Directive 2 (PSD2) and its various national implementations. For example, in France, a PSP is authorised by the Autorité de Contrôle Prudentiel (ACPR).

An online bank, on the other hand, is a dematerialized bank, which relies on a traditional bank to offer its services via digital channels.

In these two kinds of establishment, the management of a business account has a particularity: it takes place exclusively at a distance. Unlike traditional banks, it is possible not to make an appointment with an advisor in a physical branch. A seamless procedure is to be followed instead, with the help of a customer service, mostly available by chat, phone or email.

Opening an On-Line Business Account: What are the Advantages for Professionals?

Opening a business account has a number of advantages, including:

  • Clear Budget Management Opening a business account allows to separate personal and business financial flows. It can therefore ease a tax audit.
  • Easier Operations Operations are facilitated by the use of the Internet. It is indeed possible to carry out all payment operations at any time of the day and from any location, even abroad. The applications are technology-driven, and according to their users, ergonomic and easy to use.
  • Saving Time The steps for subscribing to a pro account are generally quick. It is possible to open a business account online in a few minutes with a PSP and receive an IBAN. For example, Olkypay, a PSP, facilitates the opening of business accounts for all professionals and provides a French or Luxembourgish IBAN in a few minutes, using its IBAN Express Service solution.
     Another advantage is that all required documents such as ID card, proof of address, Articles of Association, etc. can be uploaded. All procedures are carried out online. And of course, dedicated customer service teams have been created and are available by e-mail or by chat, instantly answering any questions.
  • Attractive Rates The price of setting up a business account varies from one institution to another, but the rates charged are generally lower than in traditional banks.
    Among the various online PSPs, Olkypay is one of the cheapest when charging SEPA transfers. Olkypay charges €0.20 per transfer; Qonto €0.25; Shine, Manager.one and Anytime €0.40. Another point to consider is the number of transfers included in the tariff. With Olkypay, there is no limit, unlike other players on the market.
    To make the right choice and find the right institution, we advise professionals to first define their needs and then to peruse the website of several PSPs. Once you have gathered information about the institution, the payment methods offered and any other financial service you may need, the costs and conditions, the choice will be easier.

Focus on services designed for professionals

Payment institutions target all profiles of professionals, including but not limited to self-employed entrepreneurs, sole traders, associations, small, medium and large companies. With payment institutions, professionals can benefit from a number of online services, embedded in their pro account solution. Webbanking and/or mobile apps make it possible to manage one’s pro account and carry out routine transactions such as:

  • Track expenses and withdrawals;
  • Send and receive standard transfers or Instant Payments in the SEPA zone;
  • Set the limits of your payment card (when proposed);
  • Set up direct debits;
  • Send an IBAN to any third party.

In addition to these basic functions, some payment institutions offer more options. Olkypay, for example, proposes a wide range of services for debiting and collecting from customers (virtual POS, fixed POS, mobile POS, distance selling) that can be selected according to the needs of each subscriber. The 24/7 online capital deposit is also offered with acknowledgement of receipt of the deposit certificate within 48 hours. In summary, the obligation to have a pro account depends on the legal status of the company. But beyond this regulatory aspect, having a pro account can bring many advantages: better financial management, time saving, easy-to-use Web-Banking or Mobile App. ...

To find out more about the professional solutions offered by Olkypay, visit our configurator.