What is an IBAN?
An International Bank Account Number (IBAN) is the 34-digit alphanumeric identification code attached to a bank account. It can be found on your bank statement or online banking, and it helps banks identify the accounts they are transacting with to ensure those transactions are processed correctly. The IBAN identification system is used by 77 countries worldwide.
What’s the difference between an IBAN and a virtual IBAN?
A virtual IBAN is a virtual international bank account number issued by a Banking-as-a-Service (BaaS) provider. Due to the nature of virtual IBANs, they have lots more benefits that are attractive to small to medium-sized enterprises (SMEs). For one, getting set up with a virtual IBAN is much quicker than registering with a bank in person. It’s efficient, easy and can be done from the comfort of your own home. A virtual IBAN with 3S Money, for example, can be pre-approved in as little as fifteen minutes.
What are the benefits of having a local IBAN?
- Send, receive and exchange high-value business payments in the countries and currencies you do business in, without having to physically leave where you are.
- Experience faster international payment processes, which means paying local salaries and taxes can be much quicker.
- Enjoy lower maintenance fees than what traditional banks offer, meaning lower overhead.
- Benefit from their easy integration into existing payment platforms and banking systems.
- Grow your business globally, all from your local headquarters.
How can I use IBANs to scale my business?
Businesses sending and receiving local or cross-border payments, will have a local IBAN for whichever country they set up their business account in. For example, let’s say a sustainable clothing company based in London opens a business bank account in a local United Kingdom (UK) bank. Their local IBAN would be registered to the UK. If the company then expanded and set up shop in the Netherlands to service its Dutch customer base, it would open a business account in a Dutch local bank – and would therefore have a local Dutch IBAN.
For many SMEs and enterprise-level businesses that have a growing global presence, accessing overseas markets isn’t as simple as setting up shop and accepting payments. Things like proof of residency are often required to even open a bank account, as well as other documents – which can alienate smaller businesses seeking to scale. Thankfully, electric money institutions and bank challengers, like 3S Money, eliminate this problem.
Scaling business becomes easy with virtual local IBANs, as they reduce several barriers to international business. They allow companies to create and manage more than one virtual account at a time, quickly and efficiently. This is especially beneficial for SMEs dealing with numerous transactions or expanding into new markets. It can also be a huge help for establishing a local presence. For businesses operating in multiple countries, having virtual IBANs that support various currencies can help establish a local presence and gain customer trust.
A real-world example of how getting access to a local IBAN with 3S Money has helped catapult business can be seen in our work with the fashion and lifestyle brand, Avery. With a growing European client base, Avery set a goal to conquer new markets but had a few obstacles to overcome – find out how our payment solution helped them.
Ultimately, setting up a locally issued IBAN is a good move for businesses wanting to tap into growing digital markets. With a 3S Money International Business Account, you can have a locally issued IBAN in your company name, in several countries, giving you access to markets in over 190 countries and 65 currencies.
3S Money believes in financial inclusion, whether you’re a startup founder or global director, we believe you should be able to do business anywhere in the world, no matter what colour your passport is. With our Local IBAN Accounts, you can do just that – a true testament to banking for the modern age.
Learn more about 3S Money's local IBAN accounts and more.
How do I apply for an IBAN?
Whether you’d like to access UK or Eurozone markets, getting an IBAN with 3S Money’s international business account is easy. You can get IBANs in the Netherlands, Denmark, Germany, Luxembourg and the UK – in only three simple steps:
- Check your eligibility to get pre-approved in minutes
- Apply for an IBAN!
- Receive a welcome call from our team who will review and confirm your application
Now that you know all about IBANs, let’s recap on what we’ve covered.
- IBANs ease several barriers to international business.
- Virtual IBANs are quick and easy to set up, making them attractive to SMEs and enterprise-level businesses seeking to grow.
- A local IBAN gives you the freedom to make key business transactions in the countries and currencies you do business in, from one place – wherever you are in the world.
- An International Business Account with 3S Money gives you access to IBANs across several European countries, allowing you to create and manage more than one virtual account at a time.
Virtual IBANs: Frequently asked questions (FAQs)
Virtual IBANs work similarly to traditional bank accounts. Each virtual IBAN can be assigned to specific clients, projects, or transactions. When a payment is received in a virtual IBAN, it's easily tracked and reconciled, simplifying financial management.
Absolutely, virtual IBANs can actually enhance security. By using virtual accounts for specific transactions, you reduce the exposure of your primary bank account. This adds an extra layer of security against any unauthorised access.
Yes, you can create and manage multiple virtual IBANs for your business.
3S Money offers you an International Business Account that can collect money from anywhere in the world. As part of our International Business Account, we offer local IBANs in Denmark, Germany, Luxembourg, Netherlands and the UK.
You'll need to complete our four-step application process consisting of an eligibility check (where you'll be pre-approved in under 15 minutes), an account application, a welcome call with our sales team and lastly, any additional compliance checks.
Start reaching global markets with a local IBAN
Ready to revolutionize your business's financial game and scale to new markets? Say goodbye to complex payment processes and gain a competitive edge in the global market with a local IBAN. Check your eligibility with 3S Money today and be pre-approved for a local IBAN in only fifteen minutes.