UK digital bank Monzo has reached a milestone of a quarter of a million business customers, with one in 23 businesses in the UK now onboard.
Monzo moved into the market for business accounts three years ago, a year later than arch rival Starling, which now claims 520,000 small business accounts, representing an 8.9% market share.
Monzo Business Pro costs £5 per months and includes integrations with cloud accounting tools Xero and FreeAgent, alongside other products and features such as 'Tax Pots', which automatically set money aside for a tax bill, invoicing capabilities multi0user access and the ability to auto-expert transactions. Monzo Lite is the free stripped down version of the business app.
Monzo has not provided a breakdown of free and paying customers in the 250K figures.
In April, the bank also launched Business Instant Access Savings, offering a 1.5% AER interest rate (variable) per year, paid monthly into the Pot.
This arrived two months after Starling rolled out its first savings product for small businesses, offering a fixed interest rate of 2.5% over one year on balances of £2000 or more.
Jordan Shwide, head of Monzo Business says: “Monzo Business was launched just over three years ago and now 1 in 23 businesses in the UK bank with us. Startups and small businesses are the backbone of the UK economy, and are at heart of the nation's innovation and growth. We’re lucky enough to see this in action everyday with our 250,000+ customers, working with them to create a business bank account and industry-first features that support them wherever they are on their business journey”