For African businesses, making cross-border payments through traditional banking platforms is rather difficult. Navigating FX liquidity, currency conversions, due diligence, and the extended processing time associated with some of these transactions can pose a major challenge to business operations.

E-commerce, fintech, Payment Service Providers, import/export, and travel companies that process high-value and high-volume transactions benefit from using Virtual IBAN accounts to simplify payment processing.

From collections to conversions, settlement and reconciliations, vIBAN accounts streamline the entire cross-border payment value chain, saving time and costs.

Here is how you can simplify your cross-border payment with Virtual IBAN accounts:

1. Collections

Virtual IBANs allow businesses to offer localised payment solutions to customers in other countries. With a virtual IBAN provider like WeWire, an African company can conveniently collect USD, EUR, and GBP payments without facing slow payments, compliance issues, and high international transfer fees.

You don’t need to set up a local bank account to use virtual IBAN for collections. Simply provide the Virtual IBAN to the customer. Payment is made in their local currency, and funds received are consolidated into a single main account. This allows businesses to operate globally, interacting with clients in multiple foreign countries without the operational costs and complexities of managing multiple physical bank accounts in each country.

1. Currency Conversions

Traditional cross-border payments often require importers and exporters to source FX in the vendor’s currency, convert it, and pay through a third party. Virtual IBAN eliminates the need for intermediary banks and currency conversions on the customer’s end, making cross-border transactions faster and more straightforward. This also saves cost on conversion fees for both the buyer and the seller.

1. Settlement & Reconciliations

Reconciling payments, particularly from multiple customers across different regions, is a significant challenge in traditional collection processes. Traditional bank accounts often require extensive manual intervention to match payments with specific invoices or projects.

Virtual IBANs enable businesses to assign unique identifiers to customers, regions, or invoices, automatically tagging incoming payments with relevant information. This allows businesses to automate reconciliation processes, significantly reducing the time and effort needed to match payments to accounts.

Conclusion

WeWire exists to simplify cross-border payment for businesses worldwide. With our Virtual IBAN accounts, more African businesses can access a global clientele without worrying about collections or reconciliation.

Embracing Virtual IBANs as part of your payment strategy can make cross-border transactions as seamless as domestic ones, empowering growth and simplifying international business.

Is your business ready to take the next step in global expansion?

Sign up for WeWire’s Virtual IBAN today and start enjoying the benefits of fast, secure, and efficient cross-border transactions.