Estonian start-up Xolo offers banking services with Wirecard Bank

via FinTech Futures

Xolo, the Estonia-founded freelance business manager, has teamed up with Wirecard’s fully licensed German bank to launch its new banking offering for one-person micro-businesses.

Designed to be a “one-stop-shop” which brings together company creation, business banking, web software and full accounting services, Xolo can now add a bank account to its armoury. It says payment cards are shipped to its business customers within 48 hours of opening account.

The start-up now has more than 30,000 customers across its two-part platform, which offers entrepreneurs two different products.

They can sign up to either Xolo Go which charges 5% of outgoing payments for business banking, accounting – including tax compliance and filing, sales invoices and expense management, or Xolo Leap which is €79 a month for all of Xolo Go’s features plus a physical Mastercard and access to its mobile app – which rolled out last year.

The main difference between the two plans is that Xolo Go is designed for virtual European companies, whereas Xolo Leap is designed for fully-owned, Estonian-registered companies. The start-up says a third of its customers are Estonian e-residents.

For European entrepreneurs setting up shop in Estonia, the addition of banking services “removes the last obstacle for a quick and seamless launch of an EU company through Estonia’s unique e-Residency program”, says Xolo’s CEO Allan Martinson.

“Previously, the customers either needed to travel to visit the bank or opted for using e-money providers such as TransferWise. Now, they can get a fully-licensed bank account online,” says Martinson.

The start-up ultimately wants to create “a new virtual nation for freelancers and solopreneurs”. The aim is backed by an investment round last July of $6.8 million in Series A funding backed by Estonia’s Karma Ventures, Finland’s Vendep Capital and France’s Leap Ventures.