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Starting a business
April 13, 2022

Opening an account with a payment institution: what are the advantages?

Until recently, entrepreneurs around the world relied on traditional banks to open a business account. The European Payment Services Directive (PSD2) aims to make online payments more secure and to encourage innovative financial services.
Thus, people wishing to open a business account for their activity are no longer obliged to do so in a traditional banking establishment. They can go through payment institutions such as Olkypay and benefit from all the digital advantages linked to this new type of account and from attractive rates.
In this article we will find out who the services offered by payment institutions are aimed at and what their advantages are. We will make comparisons with the services offered by traditional banks. We will then detail the procedure for opening a business account through a payment institution.

What is a payment institution and what are the advantages of having a business account with this type of structure?

First of all, let us recall the definition of a payment institution and what differentiates it from a traditional bank. These establishments have a Fintech profile with the aim of competing with banking establishments. In order to achieve this, they have chosen the digital vector to offer their services. Among them, we can find in particular:

  • Opening a business account remotely, without having to go to a physical branch ;
  • The supply of payment terminals and professional bank cards;
  • Complete digital management tools.

Many other innovative services appear regularly in the Fintech sector. This is the advantage of being digital...

However, today, unlike a bank, a payment institution will not give you access to a loan, insurance or overdraft facility...

As we said, one of the fundamental principles of payment institutions is their digital operation. They therefore operate entirely remotely and do not have physical branches. It is therefore not possible to deposit cash or cheques as is the case with traditional banks.

On the other hand, the huge advantage of this digital subscription is of course the simplicity and speed of access to financial services. Through a simple mobile application or website, you can open a business account in record time, all from your home. Even if the opening time varies according to the structure, one thing is certain: it will be much faster than going through a classic bank.

There is another advantage to be noted for payment institutions: they have a strong appeal for innovations in terms of business management. In addition to the best-known financial services, payment institutions are thinking about new concepts. At Olkypay, for example, we have a complete tool for managing unpaid bills. This type of service is typically a functionality that we will not find in a classic bank.

Who are the services of payment institutions like Olkypay aimed at?

All the innovative services introduced by payment institutions aim to cover the widest possible spectrum of professional categories.

For Olkypay, our offers are aimed at everyone:

Company founders or entrepreneurs: people wishing to create their own company can open an account and deposit capital directly on our website. A certificate of capital deposit will be sent within 48 working hours once the funds have been received.

Small businesses: small businesses that want a simple way to collect money from their customers in a paperless way can use our virtual TPE or sign up for a distance selling contract for example.

Sensitive sectors: some activities can be considered more sensitive than others, such as cryptocurrency or CBD sales. People who engage in these types of businesses are often denied their account applications by traditional banks. At Olkypay, if our checks and verifications conclude that they are legally and regulatory compliant, we are committed to supporting all activities.

Associations: most of them need to have the means to collect donations from their members and subscriptions. They will sometimes have to pay salaries and suppliers as part of their activity. Even if it is possible for an association to open an account in a traditional bank, the procedure is long and uncertain. By choosing a payment institution such as Olkypay, they will be able to access many services quickly without having to present a multitude of supporting documents.

As you will have understood, the offers and services of payment institutionsaim to cover all professionals (self-employed, small businesses, large companies, associations) who may need financial services. Thanks to the advent of digital technology and the appearance of more and more APIs in the payment sector, new concepts regularly appear to address the ever-changing needs of merchants.

How to open an account with a payment institution and what documents are required?

The process of signing up for a payment institution's services is extremely fast and simplified compared to a traditional bank.

There is no need to go to a branch or to call your advisor: everything is done online! With Olkypay, the procedure for opening a business account is done in just a few clicks and in less than 5 minutes. The merchant or company will only have to follow the detailed steps on our website. An IBAN and Web Banking login details will be provided immediately.

The steps to subscribe to our services are therefore much shorter than those of traditional banks. We invite you to discover our target="_blank">IBAN Express configurator to see how easy it is to open a business account with Olkypay!

In conclusion, the advent of payment institutions has been made possible by PSD2. Financial flows can indeed be processed by players other than traditional banks.

Access to various banking services has been digitised, simplified and professionalised. In a few minutes, an entrepreneur can open an account online with a payment institution and receive his IBAN from behind his computer. Payment institutions such as Olkypay offer tools for managing overdue payments or new features such as Instant Payment.

And don't forget to check out the rates... you'll be pleasantly surprised! To find out more, visit our Olkypay website.