Small businesses have a lot to think about, from managing everyday operations to employee wellbeing, and choosing the right financial service provider shouldn't be one of them. If you are someone who runs an international business (however big or small) or frequently travels for business purposes, you will need a business account that enables you to manage your everyday finances smoothly.
That’s when two major players come into the game: wamo and bunq. Both of these financial service providers have gained considerable popularity in recent years and have been enabling small businesses, freelancers and corporations to better run their businesses across borders.
Established in 2014, bunq has gained popularity as a fully-fledged digital bank. Their mobile app is designed for businesses and entrepreneurs to manage their invoices, business accounts, and international and domestic spending in one place.
On the other hand, wamo is a financial service provider that is a great alternative to a traditional bank and operates entirely online. Established in the UK, it offers services similar to the banks in Europe. The company has become famous for its convenient services, low-cost plans and excellent customer support. wamo is further able to offer non-residents the open to not only open a business account in the UK or Eu but also to form a company in the UK.
Both companies have managed to stay ahead of the curve through their excellent market rates and transparent financial services. But here comes an important question - Which one should you go for? There are no right or wrong answers to this question, but we have drawn a comparison for you to decide which one suits your business requirements.
Both of these platforms offer an array of features that can make financial management easy. Still, their subscription plans and fees can vary greatly. For example, wamo’s most popular plan has a number of different subscription tiers that start at €19.99 per month and increase to €99.99 per month for their most comprehensive plan. bunq, on the other hand, starts its subscription plan at €2.99 per month and goes up to €17.99 per month. Additionally, both platforms have free subscription plans for individuals and freelancers who are planning to run a business internationally.
However, it's important to note the overall cost in both scenarios as there may be additional charges along with the monthly subscription plans. If you plan to go ahead with bunq, you will be paying standard Wise charges for SEPA transfers, while wamo will give you these services at zero fees. To understand this better, let's assume you want to make a transfer of €4000 from your UK bank account to your Cyprus bank account, then you will be paying an approximate fee of €16 with bunq. If your business handles frequent local transfers, wamo becomes a better option for you as they offer free transfers regardless of the number of transactions you make in the SEPA zone.
There are further payment acceptance charges for both platforms. You will be paying a percentage of your transaction to wamo, regardless of the amount you receive in your business account. On the other hand, bunq has set its payment processing fee as per your transaction limits. If your business receives a large amount of money, bunq could be a better pick since you will be paying a fixed amount on your inflows rather than the percentage of your payment.
In terms of debit cards, the number of team members, ATM withdrawals and minimum deposits, wamo’s plan gives higher value for the price you will be paying. Technically, you can make easy card replacements, issue additional cards and add more members to your business account for free. wamo also allows you to run your own account without any minimum deposits or account maintenance charges, which can save a lot of money in future.
In all, wamo’s popular subscription plan might be higher than bunq’s plan, but the company offers almost all of its regular features for free. This will be a big plus for budding businesses and non-residents that are new in the industry and are just starting to build their financial well-being. Since bunq has been in the game for longer than wamo, bunq could be a great platform for businesses who have already established a strong foundation of business in the country. On the other hand, with wamo’s flexible procedures, low conversion rates, multi-currency accounts and free features, the platform could be a great choice for new business owners in EU, freelancers and expats who have struggled in past to open a business account elsewhere.