Challenger bank Monzo is alpha-testing a new business account.
What’s happening: Monzo announced last year that it intended to launch a business account, but it intended to do it slowly as it searched out the right model to service businesses. Monzo users have been requesting a business account for some time and the UK-based bank has applied for some grants to help fund the rollout of the new product.
Monzo founder Tom Blomfield included business banking in his 2019 product roadmap.
The challenger bank business account: Other challenger banks already have business accounts in the market. Designed for freelancers and the self-employed, N26’s Business account offers a Mastercard and a cash back program. After landing a distribution deal with WeWork, Revolut claimed it has 80,000 paying customers for its business account. While challenger banks offer a free current account to individuals, their business accounts generally come with a monthly fee.
Joust recently launched a business bank account targeting freelancers and solopreneurs in the U.S. The FDIC-insured bank combines a current account with a merchant account, enabling small businesses to issue invoices, take payment, and factor them — all within the same account.