How Does A Virtual IBAN Benefit Your Business?

Banking services have evolved significantly in recent years. Technology has offered businesses more options than ever before, allowing them to easily access banking services and adapt them to their specific needs.

Those that need to receive money from acquirers and send money to suppliers and partners all over the world can profit the most from using alternatives to traditional banking services. IBANs (International Bank Account Numbers) have been used for this purpose for more than two decades now. IBANs enable banking systems to route money to the correct country, bank, and individual branch of a physical bank using their 34 alpha-numeric characters. Other data is also included to assist the money move swiftly and accurately.

What Is A Virtual IBAN?

A virtual IBAN is a number that does not correspond to a physical bank account. Instead, it allows incoming payments to be routed to a different account with its own IBAN at a physical bank. Virtual IBANs provide the same services as traditional IBANs, but with a few added benefits.

Funds can be maintained in segregated bank accounts, which are more secure than standard bank deposits, depending on the virtual IBAN provider. Your cash is always available in segregated accounts, rather than being used for investment or trading.

How Do Virtual IBANs Help Businesses?

  • Opening a business account is easier

Virtual IBANs eliminate most of the bureaucracy that comes with opening an account at a traditional bank. As many entrepreneurs are aware, opening a business account with a traditional bank may be a complicated and time-consuming procedure. With a virtual IBAN from an online platform, this is not the case.

  • Significant cost-savings

Some businesses have discovered that having a virtual IBAN can save them banking fees, particularly those who do a lot of business online in multiple worldwide markets. This is due to the fact that many traditional banks charge significant transfer rates for converting each individual payment.

  • Improved security

In terms of security, virtual IBANs are stored in the cloud on encrypted servers with a very minimal chance of fraud or disruption. Due to end-to-end transparency and fund segregation, it’s also easier for businesses to comply with Anti-Money Laundering and Know Your Customer regulations.

  • Better functionality

To make payments easier to manage, business owners can route payments from different countries to different accounts in desired currencies, rather than directing them to a single bank account. Because you can construct sub-accounts and statements for different product ranges, or even categorize them by the customer, this simplifies reporting and accounting.

To Conclude

Companies can benefit from virtual IBAN accounts in a number of ways, especially if they conduct business internationally. With your virtual IBAN, you can have a multi-currency, multi-jurisdictional banking solution without having to manage several banking services.

However, not all virtual IBAN providers are created equally or for your business. If you believe that a virtual IBAN might be beneficial to your company, it’s critical that you choose a provider like OpenPayd. Breaking down legacy barriers and connecting merchants with a global, digital banking network, OpenPayd is the solution.