In this digital age, more and more businesses and individuals are switching from traditional banking to virtual alternatives. A virtual bank account can have many benefits, from convenience to cost efficiency – but can it help a business scale?

Free virtual bank accounts are a type of financial account that is operated remotely and online, rather than from a physical branch location. With the right type of virtual bank account, business owners can gain many key advantages that will help them achieve the scalability and flexibility needed to succeed.

In this article, we outline what a free virtual bank account is, what the benefits of opening this kind of account are, and how this type of financial account can help you scale.

What is a Virtual Bank Account?

A virtual bank account is a bank account offered entirely online, through an app, website, or other digital medium. While traditional online banking remains connected to a physical bank branch, virtual bank accounts often do not have a physical location, operating entirely digitally.

To understand virtual banking, it’s important to understand the difference between closed-loop and open-loop wallets:

•   Open-Loop Wallets: Virtual wallets are a type of digital product known as an open-loop wallet. Open-loop wallets allow users to deposit and transfer money to and from the account, as well as pay at a variety of locations both domestically and internationally. A popular example of an open-loop wallet is PayPal – though PayPal does charge hefty fees against business accounts.
•   Closed-Loop Wallets: A closed-loop wallet is a special type of virtual banking service wherein the account can have funds transferred into it but often not transferred out. These types of wallets generally cannot be used universally– instead, they function more like prepaid gift cards to specific businesses. For example, the Starbucks mobile app where you can store funds and pay directly from the app itself.

How to Use a Virtual Bank Account

Every virtual bank account will vary in how it is used. Some will require you to link an external account, such as a more traditional bank account, while others can function independently.

One of the best uses for virtual bank accounts is international transfers. Unlike a traditional financial account, virtual accounts provide the opportunity to quickly connect with other regions in their domestic currencies. This makes international transfers much simpler and more convenient to carry out.

From a business standpoint, this is a crucial advantage, as it can help you expand your business into new regions with ease.

How a Virtual Bank Account Can Help You Scale

To understand how a virtual bank account can help a business scale its operations, the first key piece of information to look at is how this type of account affects different parties.

In general, there are three many players in any virtual business transaction: the customer, the business owner, and the employees. Here is a breakdown of how a virtual bank account affects each of these players and how these benefits help with scalability:

•   Customers: Customers are the patrons of a business, purchasing goods and services a business offers. Businesses that own virtual bank accounts can often provide customers with better payment methods, as well as by enabling localized payment experiences in multiple regions. This makes accessibility for customers much higher.
•   Business Owner: For business owners, virtual bank accounts present a plethora of advantages that make scaling easy. One of the biggest benefits is the ability to carry out both domestic and international transactions with tremendous speed. This makes paying suppliers and employees a breeze, while also giving the business owner access to income and profits more quickly.
•   Employees: Providing on-demand, real-time payments to your employees is essential for maintaining a high level of employee satisfaction and retention. With a virtual bank account, providing efficient payouts to your employees has never been easier.

5 Key Benefits of Using a Free Virtual Bank Account

Along with more flexibility and scalability, several additional benefits come from opening a virtual bank account.

These include:

1.     Smooth Supplier Relations: By leveraging the right virtual bank account, you can provide your suppliers with quick, easy payments in their own currencies. Suppliers aren’t charged unexpected fees for accepting international payments, and you strengthen your relationships by being a client they can trust.
2.     Improved Security: As long as the virtual bank account you choose has the proper financial security measures in place (such as customer authentication, encryption, or tokenization), virtual bank accounts are often considered as, if not more, secure as traditional accounts.
3.     Greater Time Efficiency: Traditional bank accounts often require you to travel to their physical locations to carry out certain financial activities or to deposit funds. With a virtual bank account, you can carry out all the essential tasks you need without needing to leave your home or office.
4.     Better Rates & Fees: Unlike traditional banks, virtual bank accounts typically offer lower rates and fees – and in the case of free virtual bank accounts, there are no upfront or hidden costs for opening up a new account!
5.     Expanded Customer Reach: With a virtual bank account, you give customers greater access to your business, products, and services. You’re able to reach larger pools of customers around the world thanks to virtual accounts making it easier to carry out international transactions and accept payments made with a range of different currencies.

Final Thoughts: Sign Up for PingPong’s Virtual Wallet Today

Here at PingPong, our virtual wallet solution is enabled for multi-currency use and helps online sellers reach the suppliers and customers they need across the globe.

With PingPong’s virtual wallet, you can open multiple virtual currency accounts including GBP, USD, EUR, CAD, HKD, AUD, JPY, MXN, AED, SGD, and PLN. Plus, our virtual wallet utilizes a singular, easy-to-use platform to offer our customers the utmost accessibility and convenience.

Additionally, PingPong’s virtual wallet does not require offshore or in-person account setup and helps to eliminate the hefty costs associated with opening accounts internationally.

To learn more about our virtual wallet solution, request a free intro call today!