In today's fast-paced digital age, it's more important than ever for ecommerce businesses to have a reliable and efficient banking system to manage their finances.
With traditional banks becoming less popular due to their high fees and limited services, digital banks have become an increasingly attractive option for businesses.
But with so many options available, choosing the best digital bank for your ecommerce business can be overwhelming.
That's why we've compiled a list of the 6 best digital banks for ecommerce businesses in 2023.
Whether you're just starting out or looking to switch from your current bank, our list has the best digital banks for ecommerce.
These banks offer a variety of services, such as easy account opening, low transaction fees, and even integration with popular ecommerce platforms.
So, if you're an ecommerce business owner looking to streamline your financial operations, keep reading to find out which digital banks could be the perfect fit for your business.
Let's jump right into it!
You may already be familiar with using a service like PayPal, Stripe, Payoneer, or another similar platform as an online payment gateway.
Because of their online nature, digital banks may provide their customers with some benefits that brick-and-mortar banks and other payment methods cannot.
These banks also come with numerous apps to help you handle your finances in real-time.
Not only do they usually have lower prices for the most popular services, but they also have many unique options that you can only find online.
For this reason, we compared some of the best digital banks for ecommerce so you can make an informed decision.
Revolut is a digital bank operating in the United Kingdom since 2015.
However, the business has since gone global, setting up in several other continents, including Europe, Australia, Singapore, and the United States.
With the Revolut business account, you can connect business tools like Xero, Quickbooks, and Slack.
You can also accept direct card payments, hold and convert cash in more than 28 currencies, make payments in more than 150 currencies, and more.
Availability: Revolut is available to sole traders and business owners in the United States, the United Kingdom, the European Union, and Switzerland.
Fees: Revolut Business accounts are free to open but have some functionality limitations.
On the other hand, you need to pay a £3 fee for each international payment when you use free accounts.
Paid accounts start at £25 per month and come with a monthly allowance of free local and international payments and foreign exchange.
Receiving card payments costs 1.3% for UK and EEA cards and 2.8% for all other cards.
Novo is an ecommerce bank that provides free business checking accounts to freelancers, small business owners, and entrepreneurs operating in the United States.
As a Novo bank customer, you can manage your account via internet banking or the Novo mobile app for Android and iPhone.
Novo offers a checking account for small businesses that can handle most online merchants' transactions.
You can put money into the account with an ACH, a domestic or international wire transfer, or by depositing a check from your phone.
You can also use the mobile app to withdraw or send money via ACH or mail a paper check.
All of Novo's services are entirely free, including:
Availability: Novo is best for sole proprietorships, partnerships, LLCs, corporations, and nonprofit organizations based in the USA.
Fees: Novo Bank rarely charges a fee for any of its services. You should only anticipate paying the following fees:
Bunq could be among the best digital banks for ecommerce for Europeans who want a mobile bank with no limits.
Furthermore, Bunq users do not need to give or receive a tax number to open and utilize their paperless bank account.
As a result, users can work smoothly in EU countries while still using standard banking options.
For this reason, Bunq offers one of the easiest and most appealing ways to bank for digital nomads and freelancers.
However, if you want to open a business account with Bunq, you must have a company authorized to do business in one of the following countries: Austria, Germany, France, Belgium, Ireland, Poland, Spain, Italy, Portugal, or the Netherlands.
You must also be a permanent resident of the registered country you select for your business.
Availability: Banq is the best option for digital nomads and freelancers registered in the EU.
Fees: Business Bunq accounts start at €2.99 per month. When utilizing Bunq to process payments, there is a fixed cost of €0.20 and a transaction fee of 2.5%. Euro money transfers are free to perform.
Payoneer, established in New York, is quickly becoming a significant financial payment processing provider.
As a result, Payoneer is growing increasingly popular among businesses and retailers today.
In addition, Payoneer collaborates with several ecommerce platforms, including eBay, Rakuten, and even Amazon.
You can get a local bank account number if you live in the US, UK, Japan, the EU, Canada, Singapore, Mexico, or Australia and want to use Payoneer for your business or personal transactions.
Payoneer currently supports and accepts USD, JPY, CAD, GBP, EUR, AUD, and CNH.
Availability: Payoneer is available in more than 200 countries, and you can withdraw money to a local bank account in more than 150 countries and currencies.
Fees: Payoneer has different costs depending on the option you are using. For example, fees set by each marketplace (Wish, Fever, Upwork, etc.) or network may vary. If you need to get paid directly by your clients, the fee is between 1 and 3 %.
Additionally, there is an annual fee. But you never have to pay if you keep your account active.
Still, you will have an additional 29.95 USD fee if you leave your account open for 12 months without performing a transaction in your Payoneer account or on your Payoneer card.
N26 started in 2013 to meet the needs of remote workers by giving them an easy way to send and receive payments, make and manage invoices, and convert between different currencies.
So, N26 can make it easier for you to manage your money and the different currencies you use to sell your goods or services, whether you are a freelancer or work with clients all over the world.
Keep in mind that, depending on the situation, you may need to link your N26 account to your Wise account to complete and finalize international wire transfers and exchanges.
Availability: N26 is available among the following Eurozone countries – Poland, Norway, Switzerland, Sweden, Iceland, and Liechtenstein.
Fees: All N26 accounts, including Business accounts, are free to set up.
Starling Bank is one of the best digital banks for ecommerce based in Europe.
Because there are no physical branches, all banking is through the Starling mobile app, which is available for Android and iOS smartphones, or through a web interface.
Starling has strived to be innovative from its beginning. For example, it was the first bank in the UK to add Apple Pay to its mobile app. Android mobile wallet support followed in late 2017.
Users with access to the banking app can use several services, such as saving goals, real-time banking notifications, and personalized spending reports.
In addition to Apple Pay, Google Pay, Samsung Pay, Garmin Pay, and Fitbit Pay, Starling accepts payments from users' bank accounts.
Customers can use the Starling Banking app to quickly set up and make payments and set up and manage standing orders or direct debits. Accounts have their sort codes, and customers can earn interest on their balance.
This digital bank also provides its users with a Mastercard debit card that they can use for both online and in-store purchases.
Availability: You can open a Starling account if you are over 16 and live in the United Kingdom. But you don't even have to be a UK tax resident.
Fees: Starling accounts are free to create and use. There are no fees associated with using a UK Starling account. But if you use the euro account, it will cost you 0.4% to move money from one account to the other.
Some of the things you should look for when searching for the best digital bank for ecommerce are the same things that many traditional banks offer. For example, deposit insurance, rates and fees, etc.
However, because customers of digital banks do not have the option of visiting a branch to speak with a banker, features like easily accessible customer service may be quite important.
You can find the best digital bank for your needs by comparing its benefits and services. Here is a list of the top things to look out for:
1. Make sure your chosen digital bank is covered by the Federal Deposit Insurance Corp. (FDIC) in the case of a USA-based digital bank. Or, for European banks, check the regulations for the specific country.
2. Digital banks sometimes pay higher rates on savings accounts because they don't have the overhead costs of maintaining branches.
3. Many online banks no longer charge fees for overdrafts, overdraft protection transfers, not having enough money in the account, and returning products.
4. Check out the available ATM network and make sure there are enough in your area.
5. Since there are no physical locations, it is important to find a digital bank with good customer service that is easy to reach. For example, some banks offer around-the-clock live chat and phone support. In contrast, others let you contact customer service via your mobile app.
6. Many digital banks now offer more tools for managing money than traditional banks do. These tools are a great help for tracking your finances and sticking to your budget.
Benefits of using digital banks
💡 24/7 Access to your bank
💡 Automated payments
💡 Variety of money management tools
💡 Better rates, lower fees
💡 Integrations with major ecommerce platforms
💡 Various currencies are supported
Even though these drawbacks +might not stop you from using online services, you should keep them in mind:
1. There may be better options for people who prefer in-person touch with a client representative than online-only banks.
2. While many major traditional banks offer an extensive range of savings and checking accounts, money market accounts, and loans, an online bank may offer a different limited range of products.
3. The lack of branches can make it difficult to deposit cash into your online bank account. Some ATMs accept cash deposits. However, not all do, so check your bank's website ahead of time.
4. Security threats accompany the convenience of digital banking. The online features that allow you to view your account and transact remotely create vulnerabilities that persons with malevolent intents can exploit to take your money.
Drawbacks of using digital banks
❌ Security concerns
❌ No personal customer service
❌ Possible technical issues
❌ Limitations on deposits
❌ Limited scope of services
❌ Technology and service interruptions
Sometimes it’s easier to decide on the right option when you have features compared side by side.
So, here is the table of the best digital banks for ecommerce for easier comprehension of the options available.
As we mentioned above, there are quite a few options when looking for the best digital banks for ecommerce.
So which is the right option for you?
Well, it all depends on your needs and personal preferences.
Digital banks are a great way to receive and send money, especially if you are working internationally. They also give you many options for managing your finances and help ensure you do not overspend and always know your balance.
Still, if you want to grow your ecommerce business, expand inventory, or hire new employees, you need to have a stable cash flow.
So getting an ecommerce loan is what can help you.
Myos offers asset-based lending that can grow your revenue up to 5 times.
You can get between €10.000 and €2.500.000 of asset-based working capital finance in less than 72 hours!
Here are the benefits:
So, join Myos and increase the efficiency of your ecommerce business today!
You should open a new bank account for your ecommerce business right away because most ecommerce payment gateways require one for payouts. To receive payments from your sales earnings, you must have a bank account.
If you sell on multiple Amazon marketplaces, a Payoneer business account is ideal. It enables you to collect international sales and convert them to your local currency at a reduced exchange rate. Furthermore, if you are a non-US resident, a Payoneer business account is a smart solution.
You can use a personal account, but there are various reasons why a business account would be preferable. A separate account simplifies things for HMRC and can be used to separate personal activities from business transactions.
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