To first understand what a virtual bank account is, we must first understand what virtual banking is.
What is Virtual Banking?
As the name implies, virtual banking involves access to various financial services such as bill payments, making withdrawals and deposits, checking account information, that are offered digitally instead of having to visit a physical banking location.
What are virtual bank accounts?
Virtual Bank Accounts are foreign currency accounts that function as local bank accounts. They can be used to receive money and send money to different parts of the world online, making international money transfers even easier. They offer access to a unique bank account number for a country without residing in said country. This account makes it easy to track the payments and payouts making payment reconciliation possible in real-time, especially in the context of B2B payment processing.
How Secure Are Virtual Bank Accounts?
With the growing popularity of internet fraud, people are often concerned about the security of virtual bank accounts.
Well, most digital-only banks take the issue of secure access to virtual bank accounts very seriously. Most virtual banks would often apply a number of security measures to ensure customer safety. Measures such as two factor authentication (as opposed to the traditional PIN method) fingerprint scanning, facial recognition amongst others are used to guarantee secure access to virtual bank account owners.
Benefits Of Virtual Bank Accounts
Quick to open
There is usually an option to set up an account within minutes and completely remotely, of course. No extra effort is required, and you do not have to wait days for account verification; that’s done immediately.
Instant Account Access
A significant benefit of virtual accounts is that all you need is a smartphone and internet access to have full control of your funds. Making cross-border payments, exchanging currencies, and other payment tasks have become much easier, with no need for unnecessary trips to the bank.
Cheaper FX Fees
Virtual bank accounts are growing in popularity due to their low FX fees, in comparison to the transfer fees that would be incurred using a regular bank account. Only a fraction of the cost or in some cases no fees at all may be charged when using virtual bank accounts for international transfers, making this a popular choice for people and/or organisations frequently trying to send money overseas.
Ease of Access
The products that virtual bank accounts offer are usually explained more transparently online to ensure customers have access to any information they might need to make a decision. As opposed to a regular bank account officer who may not be able to give the account owner all the information at once.
Organisations that Issue Virtual Bank Accounts
Payoneer is an international money transfer service provider operating in 150 currencies and 200 countries globally. Businesses and freelancers who operate internationally and therefore make and receive payments in different currencies, are the major clientele of Payoneer. A Payoneer virtual bank account usually comes with a debit card.
Monzo is a virtual bank that provides both personal and business banking services all through its app. With over 4.5 million users worldwide, Monzo allows users to send money easily to family and friends, sync other bank accounts into one place and get instant notifications on spending.
Revolut is popular with frequent travellers, it offers international money transfers with no hidden fees and also allows you to hold up to 30 different currencies within the app. Revolut has over 12 million users worldwide and their aim is to out your finances at your fingertips.
Virtual bank accounts are essential for businesses all over the world and individuals who make frequent international payments because they provide the ease and convenience required when moving money across borders.
Fliqpay is developing a payment infrastructure that will enable businesses and individuals in Africa and around the world to transact in multiple currencies using virtual accounts.