Share files & collaborate with one O365 user?

if I have my own O365 account, how can I share an Excel file, for example, with someone else who doesn't? Do they also need to have an O365 plan? They only have an Exchange Online plan but I don't think that entitles them to online file sharing/collaboration?
If possible how would I share the file to them or give a URL they could connect to and collaborate with me on (without this whole back and forth of e-mailing attachments)?
garryshapeAsked:
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Vasil Michev (MVP)Commented:
If you are using plan that includes OneDrive for Business or SharePoint Online, you can save the file in the cloud and share it with them via a guest link (anonymous login) or via link that requires them to login.

Here are the instructions: https://support.office.com/en-us/article/Share-sites-or-documents-with-people-outside-your-organization-80e49744-e30f-44db-8d51-16661b1d4232
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