The recent surge in bank transfers within Nigeria’s payment landscape has elevated the prominence of virtual accounts for businesses. 

The increasing reliance on this method highlights the necessity for businesses to adopt virtual accounts, and obtaining them at no cost significantly enhances operational efficiency. 

This article delves into the concept of free virtual accounts and the myriad benefits they offer to businesses.”

Before we delve into the concept of a free virtual account, we have to touch on the definition of a virtual account. 

A virtual account is a digital account that functions almost exactly like a regular bank account. The ‘almost’ here is important because even though there are similarities, a virtual account differs from a traditional bank account with its capacity to enable businesses to automatically track all payments made by customers via bank transfers more efficiently.  

Two things are very important in the process of collecting payments as a business. The process of collecting the payment itself and the subsequent tracking of these payments. 

While a traditional bank account prioritises just collection, a virtual account is the complete package, optimising both collection and tracking.  

This is so important if you are a business that receives multiple payments regularly; tracking those payments manually before confirming if someone has completed their payment is long, tedious and inefficient. 

That time could be better spent on actual business operations. Virtual accounts eliminate that manual process, allowing you to use your time efficiently. 

Virtual accounts have a unique account number that allows for easy identification of the source or payer. Businesses can also customise these accounts to their specific needs and use them to optimise their financial processes.

Virtual accounts have become a must-have for businesses, especially in Nigeria where bank transfers have become the predominant payment method. 

The Nigeria Inter-Bank Settlement System (NIBSS) aided this surge in this trend with its Nigeria Central Switch (NCS), the highway that facilitates instant transfer of money. 

Across both physical and digital payment landscapes, customers in Nigeria now prefer to make payments through bank transfers leading to decline in card and cash usage. 

This trend further underscores the growing importance of virtual accounts. With a virtual account, businesses can put themselves in the position to attract a larger customer base, leveraging the preferences of the payment landscape. 

How does virtual account help business? 

• Accessibility
  With a virtual account, businesses can collect payments from customers anytime of the day with an internet connection.
  This capacity to be accessible every time enables businesses to make sales anytime. reducing limitations imposed by traditional banking hours.
  With virtual accounts, there are no long hours in queues at banks or frustrations with bank applications and services.
• Speed and convenience
  Free virtual accounts can be opened within minutes, eliminating the need for long application processes or visiting a physical bank. Users can set up their accounts with just a few clicks, gaining immediate access to banking services.
• Cost-effectiveness
  Virtual bank accounts generally have lower fees compared to traditional banks. Users can significantly reduce monthly maintenance fees, ATM withdrawal charges, and other transaction fees, resulting in cost savings and higher profits. All these little charges add up even if you do not notice them in real-time. In the long run, they could be the difference between your business being profitable or not.
• International transactions
  Free virtual bank accounts facilitate seamless cross-border transactions. They typically offer multi-currency functionality, allowing users to send, receive, and convert funds in different currencies with competitive exchange rates.
  If you have ever gone to the bank to initiate an international transaction, you would understand why this is a game changer; everything is so much faster and more convenient with virtual accounts.
  This feature is particularly beneficial for businesses looking to sell to a global market.

Free as the term suggests, means getting something at no cost. For businesses, obtaining resources that can help your  operations in any way is a valuable proposition. 

This value proposition is why we are talking about free virtual accounts in this article. 

Businesses can get a free virtual account from Fincra. It takes a simple and without any cost step of creating an account with Fincra, completing an onboarding process and getting access to the Fincra dashboard. 

From the dashboard, you can request for a virtual account for whatever purpose that fits the needs of your business. 

With Fincra, businesses and financial institutions can also quickly generate virtual bank accounts via APIs at any time and for any business purpose. 

Aside from just creating free virtual accounts, businesses can also collect payments in USD, EUR, GBP, and NGN, enabling them to cater to a global customer base with Fincra.