OLB Alternatives for Virtual Banking in Germany

German small and medium-sized businesses (SMBs) are quickly moving to virtual banking solutions. This is because 36% of them want better customer service, and 26% are looking for better online banking options. Since traditional banks like OLB are often taking such changes more slowly, virtual banking alternatives are winning more customers by offering simple processes, good prices, and complete financial tools that help German businesses that want to have a more productive workflow.

Since 26% of German users already use Buy Now, Pay Later services, and cash use has dropped by more than 50% since 2018, businesses want banking solutions that match their digital-first way of working.

So, which one to use? In this detailed guide, we will look at five top virtual banking providers, Spendbase, N26 Business, Revolut Business, Wise Business, and Pleo. These new banking services are popular because they offer features such as real-time spending tracking, easy international payments, and simple expense management.

Regulatory framework

If you are thinking about virtual banking alternatives for your business, you need to understand Germany’s regulatory environment. The framework combines strict German oversight with EU-wide rules, which creates both opportunities and challenges for new financial services that you might want to use.

PSD2 & EMD2 requirements in Germany

The Payment Services Directive 2 (PSD2), which became German law through the Zahlungsdiensteaufsichtsgesetz (ZAG) in January 2018, requires that all banks provide APIs that third parties can access. This regulation allows virtual banking providers to offer payment services and account information services, which makes the open banking system possible, and that’s what powers the modern fintech solutions you can use today.

Electronic Money Directive 2 (EMD2) sets capital requirements for virtual banking providers that you might choose: €350,000 minimum initial capital for Electronic Money Institutions (increasing to €400,000 under the upcoming PSD3) and €125,000 for Payment Institutions. These requirements make sure your chosen provider is financially stable while still allowing innovation in payment services.

BaFin authorization & oversight

The Federal Financial Supervisory Authority (BaFin) keeps strict oversight of all virtual banking providers that serve German businesses like yours. Authorization processes typically take 4-5 months, even though the regulatory target is 3 months. Application fees range from €6,150 for single payment services to €8,515 for multiple services. Management and directors must stay in Germany, which makes sure there is local accountability and regulatory compliance for the services you use.

Recent enforcement actions show that BaFin is watching more closely. Solaris SE was fined €6.5 million in 2024 because they were late with suspicious activity reports. This shows why it’s important that your virtual banking provider has strong compliance systems.

Strong Customer Authentication (SCA) & 3-D Secure

Strong Customer Authentication (SCA) requirements, which have been active since September 2019, require multi-factor authentication. This means you need to use two of the three things:

• Something you know (passwords).
• Something you have (mobile devices).
• Something you are (biometrics).

Virtual banking providers must use 3-D Secure 2.0 compliance for card transactions, but they can give exemptions for small transactions under €30 and recurring payments after you authenticate the first time.

SEPA & EMV compliance

All virtual banking providers that you can choose must participate in SEPA Instant Credit Transfer (SCT Inst), which processes payments within 10 seconds and works 24/7. Virtual IBAN (vIBAN) registration requirements under the 2020 BaFin administrative act make sure customers are properly identified while allowing flexible account structures for business users like you.

Data protection (DSGVO/GDPR) & Open banking APIs

Germany’s GDPR implementation includes additional financial sector requirements under the Finanzantenschutzgesetz (FDG). Virtual banking providers must use better security measures for financial data, provide comprehensive consent management, and make sure they report data breaches within 72 hours to authorities, which protects your business data.

Open Banking APIs follow the Berlin Group NextGenPSD2 Framework, which 75% of European banks have adopted. It allows easy integration with German accounting software, especially DATEV, which is the standard that most German tax consultants and businesses use for their accounting.

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Key selection criteria for SMBs

You should consider specific criteria that match the country’s business culture, regulatory requirements, and how businesses prefer to work. These include things like onboarding ti,e, fees, what currencies are supported (if you have international business), and how good the local support is.

Account opening speed & KYC/KYB

Digital onboarding capabilities are very important, since advanced virtual banks can reduce onboarding times by up to 85% compared to traditional banks. Your business should expect smooth verification processes that still follow regulations, because 80% digital onboarding has become the new standard that competitive virtual banking providers offer.

Currency support & FX rates

Multi-currency support is necessary for your business if you do EU cross-border trade and international operations. You should look for transparent FX rates, competitive spreads, and real-time currency conversion capabilities, especially for SEPA payments and transactions with international suppliers.

Virtual card & payment controls

Your business needs sophisticated spending controls with real-time transaction monitoring, limits that you can customize, and detailed categorization capabilities. Virtual card features must support both employee expense management and supplier payment workflows, while also keeping security and compliance standards that you need.

API & ERP/Accounting integrations (DATEV-certified)

DATEV integration capabilities are absolutely necessary for most German SMBs, since DATEV serves over 620,000 customers and dominates the accounting software market. You should choose virtual banking providers that offer smooth data synchronization, automated journal entry exports, and GoBD (Grundsätze zur ordnungsmäßigen Führung) compliance for tax-relevant document management that your business requires.

Pricing transparency

Your business should prefer transparent pricing models without hidden fees. The most competitive virtual banking providers offer free tier options or pay-per-use structures that align costs with actual usage, which gives you significant savings compared to traditional banking fee structures.

Local support & IBAN type (DE-IBAN vs. foreign IBAN)

German customer service availability and full German IBAN provision are also important factors that you should consider. Your business should expect native German language support, coverage during local business hours, and understanding of German regulatory requirements.

You should also check whether the provider offers a DE-IBAN or a foreign IBAN because this can affect how other businesses and institutions view your company.

Challenger banks & EMIs available in Germany

Now, it is time to discuss what virtual banking providers you can try out when expanding or opening a business in Germany.

Spendbase

Spendbase combines SaaS subscription management with digital banking services, which also launched virtual banking features. The platform targets tech companies that spend a lot on software.

How it works

You can connect your existing accounts for spend analysis, receive optimization recommendations, and get access to virtual cards for controlled spending. The platform finds savings opportunities for your business and charges 25% of the savings you achieve, rather than traditional monthly fees.

Key features

• Performance-based pricing (25% of savings you achieve).
• Up to 100 virtual Mastercard cards per organization.
• EU IBAN availability through banking partners.
• Real-time spend tracking and analytics.
• Integration capabilities for your business systems.

N26 Business

N26 Business provides fully licensed German digital banking specifically for freelancers and self-employed individuals who operate under personal names. They offer real-time banking with competitive pricing that you can afford.

How it works

You can sign up online in 8 minutes using your smartphone and ID verification, which gives you immediate access to a German IBAN, virtual cards, and mobile banking features. You get real-time transaction notifications and automated categorization for your expenses.

Key features

• Full German banking license with BaFin regulation.
• Four pricing tiers from €0 to €16.90 monthly.
• Real-time transaction processing and notifications.
• 0.1% cashback on all Mastercard purchases.
• German customer service (7am-11pm daily).
• CSV/PDF export capabilities for your accounting.

Revolut Business

Revolut Business operates under an EEA banking license (Bank of Lithuania) with BaFin supervision. They focus on multi-currency accounts and corporate expense management for incorporated companies like yours.

How it works

You can apply online in 10 minutes if your company is fully incorporated and active (no sole traders). This gives you multi-currency accounts, physical and virtual cards with spending controls, and team management capabilities that your business needs.

Key features

• EEA banking license with deposit protection.
• Multi-currency accounts and competitive FX rates.
• Physical and virtual cards with detailed controls.
• Team management and expense tracking.
• 24/7 customer support in German.
• Open Banking services and API access.

Wise Business

Wise Business operates as a Money Services Business (MSB) that specializes in international business banking. They support 40+ currencies and offer transparent fee structures that you can understand easily.

How it works

After online business verification, you get access to local account details in 22 currencies. This allows you to make low-cost international transfers at mid-market exchange rates with transparent fee structures that show exactly what you pay.

Key features

• 40+ currency support with local account details.
• Mid-market exchange rates and transparent fees.
• Extensive API for business integrations.
• Team access with permission levels that you can customize.
• Integration with Xero, QuickBooks, and FreeAgent.
• 0.5% cashback on card spending.

Pleo

Pleo provides spend management solutions with company cards, expense automation, and invoice management across European markets. They launched in Germany in 2022 and focus on making expense management easier for your team.

How it works

Your teams receive unlimited virtual and physical cards with automated expense categorization, receipt capture, and approval workflows that integrate with your existing business bank accounts.

Key features

• Free tier (5 users) and scalable pricing (£10/user/month).
• Unlimited virtual and physical cards for your team.
• Automated expense categorization and receipt processing.
• 30+ ERP integrations including NetSuite and Microsoft Dynamics.
• Full German language support.
• 0.5-0.75% cashback depending on your plan tier.

Side-by-side comparison table

Now that you know about each provider, here is a detailed comparison that will help you choose the right virtual banking solution for your business. This table shows the key features and capabilities of each provider, so you can see which one matches your specific needs.

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When to choose which option

Choosing the right virtual banking solution depends on what your business needs most. Since each provider focuses on different strengths, you should match your specific requirements with the provider that serves those needs best.

Deep expense controls & SaaS savings

If your business is a tech company that spends a lot on software subscriptions, Spendbase offers unique value through performance-based pricing and SaaS spend optimization. You only pay when you actually save money, which makes it perfect for companies that want to control their software costs.

You can give your team controlled spending power while monitoring every transaction. However, you should supplement Spendbase with traditional banking for complete coverage, since they are new to banking services.

Cross-border & FX efficiency

If your business works with international clients and suppliers, you should choose Wise Business or Revolut Business because they offer excellent multi-currency capabilities.

Wise Business provides 40+ currency support with transparent fees and mid-market exchange rates, which means you get the best rates for international transfers.

Revolut Business also offers strong multi-currency capabilities and competitive FX rates, plus they have an EEA banking license that gives you more security.

Both options are perfect for businesses that need to send and receive payments in different currencies regularly.

Team expense automation & approvals

If you want to simplify expense management for your team, Pleo is the best choice because it specializes in automated expense workflows. Your team gets unlimited virtual and physical cards with automated expense categorization and receipt processing, which saves you time on admin work.

Here you can also control spending while making the process smooth for your employees. They also offer a free tier for 5 users, which is perfect if you have a small team.

Embedded/API-first spend workflows

If your business needs to integrate banking services with your existing systems, you should consider N26 Business or Spendbase because they offer strong API capabilities.

N26 Business provides CSV/PDF export capabilities that work with your accounting software, and since they have a full German banking license, you get reliable service with good integration options.

Spendbase offers integration capabilities for business systems and focuses on spend optimization, which works well if you want to embed expense controls directly into your workflows.

One-off vendor payments & cards at scale

If your business needs to make many vendor payments or distribute cards to a large team, Revolut Business is your best option because it offers comprehensive team management features. You can create physical and virtual cards with detailed controls for each team member, and their 24/7 customer support in German helps when you have questions.

Tips for smooth implementation

Moving to virtual banking for your business doesn’t have to be complicated if you follow the right steps. Since virtual banking involves new processes and systems that your team needs to learn, you should plan carefully and implement changes gradually. This approach will help you avoid problems while also making sure your business operations continue smoothly during the transition.

Pilot with one department

You should start your virtual banking implementation with just one department or small team, because this allows you to test the system and work out any problems before rolling it out to your entire business.

Choose a department that handles expenses regularly, such as sales or marketing, since they will benefit most from virtual cards and expense management features. This pilot approach helps you understand how the new system works and train your staff gradually, which makes the full implementation much easier.

Integrate via DATEV-certified APIs

You should plan for CSV/PDF export workflows and consider third-party integration services such as Maesn or Chift for automated data synchronization. You need to coordinate with your tax advisor to make sure you follow GoBD requirements, because proper documentation is necessary for German tax compliance.

Configure spend policies & real-time alerts

You should set up clear spending policies and real-time alerts before your team starts using virtual cards, because this helps you control costs and monitor transactions as they happen. Configure spending limits for different team members based on their roles, and set up alerts that notify you when someone approaches their limit or makes unusual transactions.

Train staff on SCA & virtual-card management

Your team needs comprehensive training on Strong Customer Authentication (SCA) requirements and how to manage virtual cards properly, since these security measures are required by German regulations. Make sure your staff understands how to use multi-factor authentication, which includes passwords, mobile devices, or biometrics.

You should also establish clear policies for virtual card usage and make sure all users understand security protocols, as proper training prevents security problems and helps your business stay compliant.

Maintain a backup DE-IBAN local bank account

You should keep a traditional German bank account with a DE-IBAN as a backup, because this gives you security and helps maintain relationships with local suppliers who prefer German bank details.

Most German SMBs benefit from a strategic provider combination: primary banking through licensed institutions (such as N26 Business or traditional banks), expense management via Pleo, and international payments through Wise Business.

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Takeaway

The virtual banking revolution in Germany is happening fast, with 68% of Germans regularly using digital payments and cash use dropping dramatically. If you adopt virtual banking solutions now, your business will gain competitive advantages through lower costs, better efficiency, and clearer financial visibility that helps you make smarter decisions.

Spendbase has proven itself to be the most efficient OLB alternative in Germany for virtual banking overall.

1. Virtual banking gives you real cost savings and operational benefits that traditional banks like OLB cannot match, since these new providers focus on transparency, speed, and digital-first features that your business needs.
2. You should combine different specialized services rather than trying to find one provider that does everything. This approach gives you the best features from each provider while reducing your dependence on any single company.
3. Understanding German regulatory requirements is crucial for your success. You need to make sure your chosen providers comply with BaFin oversight, DSGVO data protection, and GoBD tax reporting rules that affect your business.
4. Each provider, Spendbase, N26 Business, Revolut Business, Wise Business, and Pleo, offers unique strengths that work well for different business needs, so you should match your specific requirements with the right provider rather than choosing randomly.
5. The regulatory frameworks are becoming more mature, and provider capabilities are expanding, which means you have better options now than ever before to modernize your financial operations and drive business growth.

You should take action today by looking at your current banking costs, finding specific problems with your current setup, and testing virtual banking solutions that solve your most important financial management challenges.