A virtual account (VA) probably is called by different names in different countries. But in essence a Virtual account is an account or an account proxy such as PayID issued by a bank operating under Finmo. The funds are still held by Finmo's custodian bank but they are virtually segregated so we know the funds belong to you or your consumers.
Types of Virtual Account
Virtual account can be of 2 types:
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Static VA : Static VA as name suggest are static in nature like a normal bank account. Once the VA is issued it can be used over and over again. You can transfer any amount to this VA.
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Dynamic VA: Dynamic VA is per transaction i.e. an account number is generated at random for a specific purpose and amount. Although useful for reconciliation, there is a bit of a hassle for consumers to transfer to a new account each time from their bank because some banks may have restrictions on amount or a wait period for newly added beneficiaries. Finmo support both the types of VA depending on the market.
Virtual Accounts in various markets
- In Australia, a Virtual Account can be issued in form of a BSB and an Account Number or a static PayID or account proxy for e.g.
[email protected]. - In Singapore, a Virtual Account can be issued in form of an Account Number only.
- In EU and UK, a Virtual Account can be issued as IBAN.
- In Indonesia, a Virtual Account can be issued as an account number where first 6 digits determine the bank who issued it. Guess what, in Indonesia, the most popular VA is the dynamic VA and 80-90% of eCommerce transactions happen via Dynamic VA only.
Popular Use-cases
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Remittances : You can generate a Virtual Account and issue it to your customers who expect to transfer funds every now and then. Your customers do not need to change account numbers everytime they want to do a transfer
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Fiat or Digital Currency Wallet Top-ups : Issue a VA to your wallet users and give them the power to load easily and transact using your platform.
New Virtual Account
To create a new Virtual Account, you need create a customer first. A customer object basically carries the information about who this VA has been issued to.