Payment industry expansion has enhanced user experience by being able to provide seamless and frictionless payments across borders. The increase in cross-border payments has necessitated innovation in the services provided. As a result, many enhanced services have been developed. Virtual IBAN is one of those pioneering advancements.
Virtual IBANs present an effective method of payments for Financial Institutions.
Virtual IBANs present a much more flexible, fast, and agile banking method.
Let’s dive in deeper and explore a Virtual IBAN and its main difference from traditional settlement accounts.
A virtual IBAN is a reference number issued by a bank that allows incoming payments to be routed to a physical/regular bank account.
Traditional brick-and-mortar settlement accounts involve long, laborious onboarding processes during setup, with ongoing complicated processes needed to ensure all banking relationships are maintained appropriately. Despite the common nature and general similarities with traditional settlement accounts, Virtual IBAN presents a more comprehensive platform with a rich range of opportunities for incoming and outcoming payments. Thus, increased efficiency, simplified implementation and much more regulated control are offered to customers.
A virtual IBAN regulatory infrastructure is similar to that of a traditional bank but presents a more unified model for payments implementation. A virtual IBAN provides payments businesses with a multi-currency, multi-jurisdictional banking solution without the need for several different banking relationships. Thus, Virtual IBAN expands the reach of financial institutions and reduces the costs associated with executing a large number of transactions.
A virtual bank means speed and agility due to its nature. Thus Virtual IBAN enables Financial institutions to create and allocate multiple virtual IBANs to each individual customer, enabling hussle-free automated processing and reconciliation.
In general, the whole system is aimed at facilitating reconciliation and thus the potential administrative costs are further reduced, allowing businesses to operate in a more efficient way on a global scale.
Virtual IBANs also improve compliance and know your customer (KYC) functions by connecting to software, databases and sanctions lists that ensure that parties are verified and payments are screened for any red flags.
Power your payments with Guavapay VIRTUAL IBAN
Guavapay Virtual IBAN for Banks enables local and regional Financial Institutions to power their business and manage payments in a convenient, flexible and speedier manner.
If your business needs to make a large number of transactions on a regular basis, Guavapay virtual IBANs are a highly effective way of sending and receiving cross-border payments on an automated basis. Guavapay provides Financial Institutions with access to virtual IBAN accounts ensuring accurate and instant reconciliation in:
- SWIFT for international payments
- SEPA EURO for Eurozone
- GBP for Faster Payments, Bacs and CHAPS
Key benefits of Guavapay Virtual IBAN accounts include:
- Fast account set-up
- Available in multiple currencies
- Improved payments acceptance, settlement times, and reconciliation
- Reduced AML and KYC risk as a result of end-to-end transparency and clear segregation of funds
- Local clearing capability (Faster Payments, CHAPS, BACS) and cross border payments through the SWIFT and SEPA network
