TL;DR
- French B2B fintech Qonto has reached 600,000 customers and has now filed for a French banking license
- The firm has been profitable since 2023 and is targeting 2 million users by 2030
- A banking license will enable lending, savings, and broader financial products
- Qonto already facilitated €50M ($59M) in BNPL financing and uses a partner-driven financing hub
- Becoming a credit institution aims to increase customer trust and accelerate product launches
From Payment Institution to Bank: Qonto’s Licensing Leap
Qonto, a French fintech focused on freelancers and small businesses across Europe, is preparing for a major evolution: transitioning from a payment institution to a fully licensed bank.
CEO Alexandre Prot confirmed that Qonto has filed for a credit institution license in France. Once approved, the license will allow Qonto to offer lending, savings, and investment products — currently restricted under its payment institution license, obtained in 2018.
Qonto by the Numbers
| Metric | Value | Source |
| Total Customers | 600,000 | TechCrunch |
| BNPL Financing Facilitated | €50 million ($59 million) | TechCrunch |
| Latest Fundraise | $552 million (2022) | TechCrunch |
| Valuation at Last Round | $5 billion | TechCrunch |
| Staff | 1,600 | TechCrunch |
| Revenue Growth (YoY) | 30% | TechCrunch |
| Countries Served | 8+ (FR, DE, ES, IT, AT, BE, NL, PT) | TechCrunch |
Credit Ambitions Driven by Profitability
Prot emphasized that the move to apply for a banking license was made possible because Qonto achieved profitability in 2023, ahead of its internal projections. This financial strength reduces the need for further capital beyond its $552 million Series D in 2022.
“The main reason we’d raise more capital would be to fund a large M&A deal,” Prot told reporters.
This strategic shift will help Qonto compete more effectively with B2B and B2C hybrid fintechs, especially as players like Revolut seek their own French license to deepen their presence in Western Europe.
A Competitive Landscape of Licensing Models
In Europe’s fragmented fintech environment, competitors have adopted a variety of approaches:
- Memo Bank launched with a banking license from day one
- Finom operates under an EMI license, now piloting lending
- Revolut holds a Lithuanian license but has yet to launch credit for businesses
Qonto’s move aligns it with more traditional banking standards, helping to boost deposit trust, reduce dependency on partners, and accelerate product rollouts internally.
Strategic Growth Through Acquisitions and Automation
Since its founding in 2016, Qonto has expanded both geographically and vertically:
- In 2022, it acquired German rival Penta, expanding into Germany
- In 2024, it acquired Regate, an accounting and automation platform
These deals support Qonto’s transformation into a finance operating system for SMBs, offering invoicing, accounting, and financial tools beyond traditional banking services.
Pan-European Reach: Germany Takes the Lead
Prot confirmed that Qonto’s customer base spans eight European countries, with Germany now its second-largest market after France. Spain and Italy follow closely, while Austria, Belgium, the Netherlands, and Portugal were added in late 2024.
The pan-EU passporting rights from Qonto’s payment license helped it scale, but without a credit license, the firm is limited in what it can offer SMBs seeking financing.
Credit Services: Demand Validated, Scope Still Limited
To date, Qonto has tested demand for credit via its “Pay Later” BNPL service, which has already facilitated over €50 million in short-term financing. However, under current rules:
- Lending must be funded via Qonto’s own equity
- Loans are capped at 12-month durations
To bridge the gap, Qonto offers a “financing hub” featuring Defacto, Karmen, Riverbank, and Silvr, enabling longer-term and specialized financing.
Prot said this hub will remain for now — but acknowledged that owning the lending stack offers higher margins and greater control over deposit utilization.
Building In-House Capabilities: From Card Processing to “Qonto Intelligence”
In line with its efforts to reduce reliance on third parties, Qonto has:
- Built its own card processing infrastructure to improve acceptance rates
- Begun developing Qonto Intelligence, an AI-powered layer for financial decision-making
This internal product development will be accelerated under the new license, allowing Qonto to launch features faster and provide more tailored banking services.
License Approval and IPO Potential
Although Prot didn’t offer a timeline, gaining approval from France’s banking regulator will take time. To support this process, Qonto has:
- Expanded its risk management and compliance teams
- Strengthened its board of directors with senior banking talent
These actions not only bolster Qonto’s readiness for regulatory scrutiny but also position it for a future IPO, which the company has hinted at as a longer-term goal.
What’s Next for Qonto
Qonto’s application to become a full bank represents the next chapter in its European growth. With a strong customer base, profitable operations, and a clear roadmap to broaden its product suite, the company is well-positioned to evolve from a neobank into a licensed financial platform built for Europe’s SMBs.
