B2B FinTech Qonto Files for French Banking License

Qonto, a finance management solution for small and medium-sized businesses (SMBs) and freelancers, has submitted a banking license application with France’s banking supervisor, the ACPR.

If a license is granted, it will enable Qonto to offer broader lending, savings and investment capabilities, the company said in a Thursday (July 3) press release.

The company operates with a payment institution license, according to the release.

“[SMBs] need comprehensive financing solutions, and while we already serve many customers through partnerships and our Pay Later service, a banking license will enable us to expand these capabilities with complete independence,” Qonto CEO and Co-Founder Alexandre Prot said in the release.

Qonto’s finance management solution includes business banking along with invoicing, bookkeeping, spend management and other financial tools, according to the release.

The company recently added an in-house card processor that has boosted card acceptance rates and a Pay Later service that has facilitated €50 million (about $59 million) in financing since early 2024, the release said.

Qonto was launched in 2017 and now has more than 600,000 customers across eight European countries: Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal and Spain, per the release.

“This [banking license] application builds on our proven financial performance, having achieved profitability ahead of schedule in 2023, and supports our mission to create financial freedom for 2 million [SMBs] and freelancers across Europe by 2030,” Prot said in the release.

Qonto launched Pay Later in March 2024, saying this short-term financing, or buy now, pay later (BNPL), offer gives eligible customers instant access to funds, with the financing to be repaid in three installments over 90 days.

Pay Later was the company’s first in-house financing offer. Before that, Qonto relied solely on partnerships to provide financing to its customers.

In March 2024, Qonto added financial tools for accountants by acquiring French FinTech company Regate.

The company said at the time that integrating Regate would add more accounts payable, accounts receivable and bookkeeping features to Qonto; streamline the flow of data between SMBs and their accountants; and add Regate’s existing partnerships with industry leaders like Sage or Cegid.