Today’s businesses require financial solutions that keep up with the complexity and speed of global operations. Traditional banking solutions frequently fall short of offering the flexibility, control, and efficiency that businesses need, whether they are handling several currencies or entering new markets. Presenting Flyfish, a revolutionary payment platform that offers multi-currency accounts, dedicated corporate accounts, and Virtual IBANs in order to simplify your international financial management.
What is a Virtual IBAN Bank Account?
A Virtual IBAN (International Bank Account Number) is a unique digital identifier linked to an underlying bank account. It allows individuals and businesses to send and receive international payments seamlessly, eliminating the complexity typically associated with cross-border transactions. Rather than being a standalone bank account, a Virtual IBAN functions as a sub-account connected to a primary (parent) account.
Key Features
Cross-Border Transactions: Simplifies international payments by enabling efficient multi-country transfers.
Operational Efficiency: Allows businesses to manage all payments through a single main account while tracking individual transactions with ease.
Cost-Effective: Reduces the need to maintain multiple bank accounts across different regions and institutions.
Versatile Use Cases: Ideal for businesses managing global payments as well as individuals receiving remittances from multiple countries.
How to Open a Virtual IBAN Account?
A virtual IBAN stands for a unique identifier linked directly to a primary bank account, enabling seamless and safe international transactions. Here is how you can open yours:
- Choose a Provider: Select a financial institution or fintech company that has virtual IBAN services from the likes of Wise, Payoneer, Revolut or local banks.
- Register Account: You will have to register an account on the provider’s platform. This can be done using a mobile app or a website. Basic personal or business information will be requested.
- Identity Verification: This is usually the KYC process where you have to submit some documents like a passport, ID, proof of address, or business registration.
- Currency and Country: Choose the currencies and regions for which you need virtual IBANs.
- Fund the Account: Load money or attach your main account to enable the virtual IBAN.
- Get IBAN Details: Once approved, you receive your unique virtual IBAN ready for payments, transfers, or to receive money.
Virtual IBAN for International Payments
Here are Virtual IBAN provider for international payments:
- Wise (formerly TransferWise)
- Payoneer
- Revolut Business
- Airwallex
- Adyen
- N26
- Stripe (via Treasury services)
- Bankera
- Monese
- WorldFirst
How to Transfer Money Using Virtual IBAN?
Using a virtual IBAN is very easy and safe when transferring money. Here’s how to do it:
Sign in to Your Account: Access your Virtual IBAN provider’s platform through the mobile app or website.
Initiate a Transfer: Select the option to send money or make a payment.
Enter Recipient Details: Provide the recipient’s IBAN (if available) or bank account information, along with the recipient’s name and any required payment reference.
Choose Currency and Amount: Enter the transfer amount and select the desired currency. If multiple currencies are supported, conversion is handled automatically by the platform.
Review and Confirm: Verify all details, including fees, exchange rates, and estimated delivery time, then confirm the transaction.
Payment Completed: The amount is debited from your Virtual IBAN, and the recipient receives the funds directly in their linked bank account.
Virtual IBAN vs Traditional IBAN
- Virtual IBAN: A digital sub-account that is connected with a main bank account and is perfect for businesses with a number of clients or currencies. Provides better payment tracking and flexibility.
- Traditional IBAN: A specific account number that is directly associated with a single bank account. Typically used for personal or standard international banking.
Virtual IBAN vs Multi-Currency Accounts
Virtual IBAN:
- A sub-account with a digital address that links to a main account.
- Easy tracking of payments for certain clients or purposes.
- Can make payments in multiple currencies through the main account.
- Ideal for businesses requiring detailed management of transactions.
Multi-Currency Account:
- An account that holds and transacts in several currencies.
- Streamlines currency conversion and avoids having to open numerous local accounts.
- Ideal for individuals or businesses who handle different currencies on a regular basis.
Virtual Bank Accounts with IBAN
aVirtual bank accounts with IBANs are a type of account that has a unique international account number (IBAN). It’s usually provided through fintech platforms or online banks. The process operates just like the usual way of operating, but with a digital system instead.
Major Features
- Virtual accounts offer support for international payments and transfers.
- Virtual accounts support global transaction in multi-currency formats.
- Fees tend to be more economical compared to traditional bank services.
- Accessible via mobile or web platforms.
Popular Providers
- Wise
- Revolut
- Payoneer
- Airwallex
- N26
Advantages of Virtual IBAN
Benefits of virtual IBANs are:
- Efficient Payment Management: Tracks multiple transactions under one main account.
- Cost-Effective: Saves fees for international and multi-currency transactions.
- Global Reach: Allows frictionless cross-border payments across different currencies.
- Enhanced Security: Uses unique identifiers for each transaction, therefore reducing the risk of frauds.
- Integration: Integrates easily with the existing financial system through APIs.
- Scalability: It is excellent for businesses handling a high number of clients or payment channels.
- Faster Transactions: Completes transactions faster than the traditional system.
To Sum Up
Virtual IBAN bank accounts are innovative digital solutions for streamlining how businesses and people manage finances across different borders. Virtual IBANs serve as sub-accounts tied to a main account, simplifying cross-border operations and ensuring that international payments and remittances in multiple currencies become easily accessible. They present easy tracking of payments, saving costs, security through unique identifiers for transactions, and integration with other financial systems. Ideal for businesses with high transaction volumes or multiple clients, virtual IBANs are faster, more scalable, and cost-effective compared to the conventional banking solutions. Virtual IBAN provides a versatile tool for modern financial operations.
Faqs
What is a Virtual IBAN?
A Virtual IBAN is a unique digital identifier linked to a primary bank account. It enables seamless international payments while allowing transactions to be tracked individually, making reconciliation faster and more efficient.
How does it differ from a standard IBAN?
Virtual IBAN:
Acts as a sub-account linked to a main account, primarily used by businesses to track and manage individual transactions with greater accuracy.Standard IBAN:
Directly associated with a single bank account, typically used for personal or routine banking purposes.
Who provides Virtual IBAN services?
Well-known providers include Wise, Revolut, Payoneer, Airwallex, Adyen, and N26.
How do I open a Virtual IBAN account?
The process is straightforward:
Choose a Virtual IBAN provider
Sign up and complete identity verification
Select supported currencies or regions
Fund the account (if required)
Receive your unique Virtual IBAN
Does a Virtual IBAN support multi-currency operations?
Yes. Virtual IBANs support transactions in multiple currencies through the linked primary account, allowing efficient cross-border payments.
Are Virtual IBANs suitable for small businesses?
Absolutely. Virtual IBANs are especially beneficial for small businesses managing international clients or multi-currency payments due to their cost efficiency and detailed transaction tracking capabilities.
How do I use a Virtual IBAN for money transfers?
Log in to your Virtual IBAN provider’s platform
Initiate a transfer and enter the recipient’s details (IBAN or bank account)
Select the currency and transfer amount
Review applicable fees and exchange rates
Confirm the transaction
Funds are transferred securely and received directly by the recipient.
How secure are Virtual IBAN transactions?
Virtual IBANs enhance security by assigning unique identifiers to transactions, reducing fraud risk and ensuring payments are fully traceable.
Which industries benefit most from Virtual IBANs?
Industries with frequent international transactions—such as e-commerce, fintech, global trade, and digital services—benefit greatly from Virtual IBANs due to their scalability, efficiency, and streamlined payment management.