One of the positive impacts of technological advancement is everything can be done so easily, including transacting funds.
Transaction activities that initially had to be done physically, in banking halls through traditional payment methods have been made easy with the use of virtual bank accounts and mobile money wallets.
As the name implies, a Virtual Account is a bank account with virtual nature. Virtual Bank Accounts (VA) are non-physical bank accounts that function like regular bank accounts in the sense that they are used to collect payments and make payouts (transfers).
VA holders are issued unique account numbers; with the use of a VA, it is easier to track transactions, which makes account reconciliation possible in real-time.
Transactions carried out through virtual accounts have a reputation for being quick and easy, and free of the headaches associated with traditional banking methods eg - Hidden fees and markups.
Digital banks and fintechs are catching on to the growing need for virtual accounts and are stepping up to the challenge of meeting this need, because virtual accounts offer the flexibility and accessibility to manage payment processes in the same way that traditional banking methods offer, with a lot less hassle.
Why Virtual Accounts Are Ideal for Global Businesses.
Global businesses that have a client base situated all over the world will definitely experience some difficulties when trying to find a banking system that makes payment collection and transfers seamless, traditional banks do not offer solutions for global businesses mainly because they do not have the capacity to do so.
Most of the time, these businesses would have to open multiple international bank accounts to be able to make and receive payments between different locations.
Virtual accounts and digital banking as a whole, open up new possibilities because they provide payment solutions that are flexible enough to accommodate all types of customers, regardless of their location. Digital banks issue named virtual accounts to their customers to enable them to have virtual wallets where they can make and receive local and international payments. The funds accrued by reason of those payments are in one central place and are easier to manage.
Virtual accounts are not just an ideal solution for global businesses themselves, but for their customers as well. Global businesses in partnership with a digital bank can issue named virtual accounts to their customers to enable them make and manage their payments seamlessly.
When done the right way, virtual bank accounts also ease regulatory stress on digital banks because the virtual account provider will take care of their compliance needs on their behalf, relieving them of one less hurdle to go through.
Providing payment solutions for global businesses can be difficult, and it may seem like there might be no one size fits all solution. That’s where Fincra comes in, Fincra uses named virtual accounts to optimize daily payment processes for customers, such as tracking transactions for real-time account reconciliation and more.
Fincra’s virtual accounts are available in EUR, GBP and NGN, and the accounts for these currencies are tied to respective wallets on our platform, this means that for each currency inflow into the virtual account, there is a settlement in a respective Fincra merchant wallet.
For instance, if an inflow comes into Mr A’s GBP virtual account, it gets settled in his Fincra GBP wallet. This allows our customers to keep track of the inflow and outflow of their funds.
Fincra provides an easy-to-integrate virtual account API for fintechs, online platforms and global businesses. Onboarded merchants are able to provide local accounts to their customers for payment collection in supported currencies, from anywhere in the world. Digital banks are able to integrate our API and issue named virtual accounts in the supported currencies to their customers, enabling them to scale to their maximum potential and expand across borders.
Fincra’s Virtual Account Use Cases
1. A means to fund your merchant wallet.
Fincra’s merchants can use named virtual accounts in the supported currencies to fund their wallets to initiate payouts. All merchants have to do is to fund their wallets in the desired (and supported) currency on our platform, through their virtual accounts, fill in the necessary information and begin to make seamless payouts to their suppliers, customers and individuals, with no hidden fees.
2. Easy Payment collection
Fincra’s virtual accounts are a reliable and secure way for merchants to facilitate payment collections in EUR, GBP and NGN, at the best rates. The merchant requests for a virtual account in any of the desired aforementioned currencies, and can share the account information manually or via their business platform and they can begin to collect payments from their customers from anywhere in the world (inflow). The merchant can initiate a payout into a regular bank account via their virtual account if they wish to do so (outflow) via their portal or integration to our API.
Why you should use Fincra’s Virtual Account Solution
- Seamless payment collection at the best possible rates: Merchants are able to collect payments securely from almost anywhere in the world, without the headaches of traditional banking methods
- Quick and easy payouts: With named virtual accounts, merchants can easily top up their wallets to make secure payouts to their suppliers, customers and individuals in Africa, Europe, and the UK with no hidden fees.
- Security and reliability: Fincra is safe, secure and licensed. Merchants can be rest assured that their funds are 100% secure.
Fincra provides an all-in-one reliable solution in terms of payment optimization for global businesses, fintechs, digital banks and online platforms. Our virtual account solution provides a low-cost and dependable method of receiving international payments without leaving your current location.
With Fincra, you have the assurance of security, as you and your customers’ information is in safe hands.
Fincra currently offers online and offline payment solutions to global businesses, fintechs, institutions, and business platforms, as well as payment management capabilities for themselves and their customers all over the world.
Through our reliable infrastructure, fintech and digital banks can scale globally and build payment solutions for the future with our easy to integrate API keys for payouts and collections, to enable them to perform transactions with ease and provide their customers with a better payment experience.
Fincra also provides white-label agency banking solutions to aid financial inclusivity and bring banking services to customers at the last mile. Through our infrastructure, financial institutions and businesses are able to provide banking solutions to their customers at their convenience.
You can also give our products a quick spin by signing up for a demo here: https://sandbox.fincra.com/auth/signup