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International Internet Magazine. Baltic States news & analytics Tuesday, 23.04.2024, 04:23

Estonia: Xolo, Wirecard launch new banking service for e-residents

BC, Tallinn, 02.03.2020.Print version
Xolo, Estonia's biggest provider of services for e-residents, and German bank Wirecard have launched a new banking service that enables e-residents to open a bank account without visiting Estonia, informed LETA/BNS.

Starting Monday, all e-residents opening a business in Estonia via Xolo can open a bank account and obtain a debit card with their German IBAN without a visit to a bank office. All necessary transactions can be done via Xolo's virtual business platform. 

Xolo CEO Allan Martinson described the opening of a bank account as one of the biggest concerns for e-residents establishing a business in Estonia. Effectively, they were serviced by just a single bank and they had to travel all the way to Estonia to open an account. The alternative would have been to use payment service providers, which however are not licensed banks.

"Now we have solved this problem for e-residents," Martinson said. 

Leonard Coen, head of sales, financial institutions and fintech Europe at Wirecard, added, "We are pleased to support Xolo's ecosystem of business users with a streamlined and integrated payment and banking experience which will allow them the freedom to innovate and harness the success they seek."

Via Xolo, e-residents can now set up a bank account as well as establish a limited liability company in Estonia.

Xolo and Wirecard developed the service over more than a year. 

Xolo is a service platform specifically designed for solopreneurs, micro-business owners, digital nomads, and freelancers, which makes it simple and cost-effective to run a business from any location. Freelancers can launch and run their companies fully online, while Xolo's online platform takes care of company formation, taxes, and accounting.

As an official member of the e-Residency marketplace, the Xolo platform has been joined by over 30,000 customers from more than 100 countries to establish their business. About 3,000 of them have launched a private limited company in Estonia via Xolo, which gives Xolo a market share of approximately 35 percent on the market for e-residents. In addition, thousands of clients use the "virtual company" service launched by Xolo last year.  

Xolo employs a workforce of 80 in Tallinn and Tartu. The company raised six million euros in growth capital in 2019. 

Wirecard is a bank and global tech company with a global reach licensed in Germany and listed on the sock exchange. The company has over 5,300 employees and 26 offices all over the world. 

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