How to choose the right payment partner for your startup: A guide to streamline your company's finances

PR Manager

Jul 21, 2023
5 min

There is a real boom of startups nowadays. Individuals take the leap to pursue their entrepreneurial dreams, empowered by a range of resources that were previously scarce or nonexistent. Easier access to information, education, knowledge sharing, insights into foreign markets, and the transformative power of the Internet have paved the way for aspiring business owners. The landscape has changed, providing unprecedented opportunities for growth and development.

However, there are still challenges for new entrepreneurs, which can be decisive on their path. Many will have to learn a lot in various fields, have good financial management (especially at the beginning, when resources are limited), analyze the competition and risks in the market, form a work team, and be aware of regulations and compliance, among others.

Although many decisions and tasks are the sole responsibility of the entrepreneur, they can find support from strategic partners in various aspects. Over the years, Blackcatcard has emerged as a trusted partner for numerous entrepreneurs, especially in the realm of financial operations, serving as a reliable provider of online and mobile banking solutions.

The Importance of a Reliable Banking Partner

Neobanks were created precisely to improve the customer experience and simplify particularly their finances. Startup entrepreneurs value simple processes from scratch. Even the most experienced people recognize that saving time on one task means investing that time in other, more intricate ones that only they can handle. For instance, meeting up with partners and investors, joining in on conferences, or jetting off internationally for work. Time is the key factor, and they should not spend it unnecessarily on something that a banking partner can facilitate for them.

If we look at how the relationship starts between a company and a provider of financial services, it all begins with the opening of an account for the business, which is a simple procedure. A financial service provider should not have to make it complex for its customers, as is the case with banks and their robust bureaucracy. In contrast, one of the biggest advantages we neobanks have is the ability to do all the onboarding of our clients and the verification of their information fully digitally and remotely. By doing so, we not only save valuable time but also significantly reduce costs, enabling entrepreneurs to optimize their financial operations and effectively allocate resources.

Of course, opening the account is only the beginning. After that, it is essential for the client to manage their business funds quickly and easily, track their transactions, monitor the flow of money, and understand the relationship between expenses and income. Before, at traditional banks, it was necessary to request many physical documents and statements to be able to analyze all these issues.

The evolution of neobanks allows customers to access this always up-to-date financial information at any time autonomously from anywhere by accessing their account via website or app. This enables informed decision-making and contributes to the overall financial stability of the company.

In the same vein, startups need streamlined and simple payment processes. The way companies make transfers and payments – to suppliers, employees, or customers – has evolved over the last decades. With the help of online and mobile banking, entrepreneurs can quickly access their company's resources through digital platforms. They do not need the intermediation and approval of a bank officer to perform these operations. Smooth payment processing improves the customer experience, minimizes payment delays, and helps maintain positive customer relationships.

In addition, the growth of startups requires flexibility in the management of funds since the expenses at the beginning are certainly not the same after the constant growth of the company. For this reason, the banking provider must guarantee its corporate clients a flexible volume of allowed transactions, in addition to guaranteeing 24/7 access to its resources.

On the other hand, it is worth highlighting the security provided by neobanks in terms of implementing protocols to protect their customers' funds. With startups frequently engaging in online financial transactions, a critical issue arises: the false sense of trustworthiness portrayed by deceptive websites intended to pilfer customer data. Consequently, security emerges as a primary concern. To improve the level of security for their customers, neobanks have implemented protocols such as 3D secure payments, in sync with large payment processing companies, multi-factor authentication measures, among others, reducing exposure to different forms of fraud. You can find more information on why your money is safe in neobank here.

Finally, we also highlight the importance of customer service as a key tool for the proper financial management of a client of any banking service. As we mentioned before, businessmen are constantly busy with business trips abroad, meetings, and other responsibilities that make a visit to a bank branch impossible when necessary. We, neobanks, are available for our customers 24/7.

Blackcatcard’s online and mobile banking as the optimal financial solution

Most of our corporate clients agree that they experience efficient financial management right from the start thanks to our banking service.

If you are looking to open an account for your startup at Blackcatcard, you just need to register as an individual customer, provide some personal data, and pass the identity and address verification. Literally, in a matter of minutes, you will finish this first phase, which is totally free of charge. Then you must apply to open a business account, which can take from one day. During this stage, you just have to tell us a little about your business and digitally submit documents about your company, shareholders, and directors, which you surely have, such as:

  • Certificate of incorporation
  • Memorandum of Association
  • Articles of Association
  • Board Resolution
  • Updated List of Directors
  • Communication address proof of the entity
  • Certificate of Good Standing and Certificate of Incumbency

In some traditional banks, the simple procedure of opening a basic account can turn into a lengthy process, as banks insist on in-person visits, appointment scheduling, and enduring long queues. It involves physically submitting documents and waiting for days, or even months, which can be further prolonged by additional document requirements or any errors made by either the client or the bank. Considering the high operating costs of a bank, opening such an account, along with other banking services, can be significantly more expensive than at our neobank. At Blackcatcard, most companies, particularly in the EU, pay very competitive fees for each of our services, from account opening to its closure. You can find more information about our pricing here.

As a corporate client, you have access to multiple services in the Blackcatcard app, designed to simplify your startup life and yours. In a single digital platform, you find everything you need to manage your finances.

You can autonomously organize your budget, make SEPA payments and even request additional corporate cards to pay your employees' salaries. To promote the growth of your business, you will find no sum restrictions for outgoing transfers to other accounts. Of course, there are also no restrictions for incoming SEPA payments you receive, which are completely free of charge.

All information about these transfers is recorded in the app, so you always have access to your business cash flows. If, for any reason, you need a statement of your account, you can make the request quickly from the platform and receive it in both digital and physical versions.

One of the most important factors for us as a banking provider is to ensure the security of our customers, both corporate and individual. Online payments are undoubtedly very frequent for startups. Therefore, we use a 3D secure protocol, i.e., an additional step for the confirmation of all online transactions. On the other hand, if you want to increase the protection level of your funds, you can order as many additional cards as you wish. This way, in addition to distributing your budget on different cards, you can guarantee that in case of fraud, blocking, or theft of one of them, the rest of your funds will be safe, and you will be able to continue managing your money without obstacles.

It is worth noting that, as a neobank, we do not use your money in any way, unlike traditional banks, which are allowed to use the money deposited by their clients for investments, granting loans, etc. Although it could be an exceptional case, a crisis (or the definitive bankruptcy) of a bank puts the depositors' money at risk. This is not our case. So you can be confident that your money will always be in your account and only you can use it! Find more about EU regulations for neobanks here.

We know that your business does not rest, and neither do we. As a European neobank, we have clients from different countries, which have different operation hours, holidays, etc. Many startups and large companies require constant contact with us to solve multiple problems or requests they have. For this reason, our support service is available 24/7.

Indeed, choosing the wrong banking provider can result in inefficiencies, security vulnerabilities, limited functionality, and increased costs. In contrast, selecting an appropriate banking service, like ours at Blackcatcard, empowers startups with the necessary tools and support to effectively manage their finances, streamline operations, and focus on their core business objectives, ultimately contributing to their long-term success. 


Are neobanks suitable for a startup?

Of course they are. From a certain point of view every large neobank was a startup. We understand the needs of new and growing companies and make it easier for them to manage their finances.

What about costs?

Neobanks, like Blackcatcard, are constantly working to reduce operating costs as much as possible. This way our clients pay much lower commissions in comparison to others in the market.

What are the advantages of a banking provider that operates only online, without physical offices?

There are several advantages, among the most important of which are the streamlining of processes -such as onboarding-, permanent customer service, and access to financial services from anywhere in the world.

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