What are the benefits and use cases of multicurrency IBANs
What is a vIBAN?
A virtual IBAN account is a specific type of bank account that can be managed entirely online through a mobile or a desktop banking interface. A vIBAN operates similarly to a traditional bank account. Yet, virtual IBAN accounts offer their holdres a significant number of additional benefits including higher transaction speed and security to multi-currency capabilities, making them invaluable financial solution for individual customers around the world.
An IBAN refers to an international numbered bank account. Bank accounts in the EU and in many other countries around the world are automatically assigned a bank account code. An IBAN is a bank account code, consisting of 34 numbers and letters, which tells the bank or the payment service provider where to send funds.
One common occurrence between vIBANs and regular IBANs is overbilling. Regular IBANs are matched 1:1 to a bank account, meaning there is only one associated account with individual IBANs. On the other hand, a virtual IBAN can have multiple vIBAN variants that send payments to a single central bank account. Thus, virtual IBANs provide multicurrency services within a single infrastructure.
Benefits of virtual IBAN accounts
Accounts in multiple currencies. With virtual bank accounts, you can pay and receive money in different currencies from other countries, while being in a completely different country. This capability reduces costly currency exchange fees and some international financial barriers.
Barrier Reduction. You don’t have to be a local resident to open a virtual bank account in another country. Virtual account providers allow you to open and manage virtual bank accounts online in multiple countries through a single account with an International Bank Account Number (IBAN).
Saving time. Opening a virtual bank account does not take as long as a traditional banking one. With virtual accounts, you don’t have to stand in long lines at the bank or fill out long paper forms. After completing the KYC process online, you can open an account and make transactions from the comfort of your home with a few clicks and spend your time on more important activities.
More Cost-Effective. Virtual banking can potentially save you over 20% on your banking fees. Unlike traditional banks with high FX transfer fees, virtual IBAN providers have their own pricing models, typically with low convenience fees and no hidden fees for online transactions.
Shorter Transaction Processing. Traditional banks need days to weeks to process transactions. Using a virtual account with fast online payment processing speeds up the transfer process, allowing same-day or near-instantaneous payments.
Higher security level. Virtual accounts are more secure by default than traditional bank accounts as virtual IBANs are encrypted. This protects customer data from fraud and hacking. Virtual banks are also required to comply with anti-money laundering (AML) and Know Your Customer (KYC) regulations, making them legal and trustworthy.
The Quppy personal virtual IBANs
Quppy offers personal virtual IBAN accounts to its customers from all around the world. The Quppy vIBANs are multicurrency and support third party incoming and outgoing transactions. All Quppy virtual IBANs support Instant SEPA transactions with no fees. The Quppy multicurrency IBANs can be used to receive salaries, perform single and recurrent payments as far as operate with digital currencies. These vistual IBANs can be opened in the Quppy Wallet app within 5 minutes and are fully compliant with European financial regulations.
