PrePay Solutions takes a shine to challenger bank Coconut
No buts, it’s Coconut
PrePay Solutions (PPS) has partnered with UK start-up Coconut, for an app-based account that manages tax and expenses for freelancers and the self-employed.
The news follows on from last week, when Coconut (formerly Monizo) opened its business account, called Coconut Start.
Under the new partnership, PPS is providing the banking infrastructure and card technology.
Ray Brash, CEO of PrePay Solutions, says: “As with any partnership, the chemistry has to be right and the Coconut team is perfectly aligned with our company vision and ambition. Freelancers, sole traders and small businesses are the backbone of our economy, but they are completely underserved when it comes to fit-for-purpose digital banking and account tools.”
Coconut is targeting the UK’s 4.9 million self-employed community and wants to make the most of the HMRC’s Making Tax Digital Initiative, which will require all small businesses and self-employed people to file quarterly tax from April 2020.
The Coconut account includes a smartphone app featuring automated tax management and expenses tools, as well as a contactless Mastercard for making payments in store and online.
An account can be opened on a user’s mobile, and offers notifications on all transactions, in addition to a function for storing receipts, all feeding into a real-time tax assessment preview to help budget for tax bills.
Coconut is backed by tech accelerator, Techstars, and was recently named one of the ten winners of the Nesta Open Up Challenge, a competition to award grants to businesses using new open banking APIs.
