What is a virtual account & why does your business need one today
Going digital is no more a luxury but a necessity that is shaping up to our lives and the way we do things. To understand how technology is shaping up the future of the banking & financial services industry, it is important to understand the basic components which shape it up — starting off with what is a virtual account and how it adds value for businesses.
What is a Virtual Account?
A virtual account is a digital account but works pretty much like a normal one. Virtual accounts ease up the banking process and make it more convenient & fast for you to make deposits, withdrawals and perform other banking transactions without the worries and delays of the legacy banking system.
A Virtual account for business does much more than just the usual banking functions though. One of the best ways to use it for your business will be to generate multiple virtual accounts via one nodal account, and assign them to different customers, employees, or partners you deal with for collecting payments.
How does a virtual account work?
Now that you have understood what is a virtual account, let’s delve deeper into how it functions and how it will add value for you as a business owner. If you are a business owner who receives many payments from multiple sources, and has to spend a long time to figure out ‘who paid for what & when’, then I guess you need a virtual account.
You can simply sign up for Open’s virtual account API and then integrate it to your business.
With the virtual account from Open, overcome the following challenges:
Online Payment Collection
Businesses have to collect online payments from different places. This can range from consumers to investors to creditors. For making seamless online collections, you need to have a dynamic and robust payment collection system. With Open’s virtual account API, you can automate online payment collections that reach you from multiple but unique sources.
Payment Reconciliation
When you receive payments from multiple sources and channels, you’ll have to sit and manually reconcile all financial transactions, which is pretty hard to even think about. With a virtual account for business by Open, you can automatically reconcile all your transactions with ease.
Here are a few more reasons to opt for virtual accounts -
- Cost-efficient option
- No random human error
- Hyper-personalized services
- Easy to track and monitor payments
- Avoids tedious traditional banking formalities
Why is a virtual the need of the hour?
With Open’s virtual account APIs in India, businesses can easily create many virtual accounts for different stakeholders as and when you need it. It helps businesses save time and money by helping them with automatic payment collections and automatic reconciliation. The virtual account API by Open can ease tasks like expense management, TDS payments, and you can even make direct GST payments, as it also comes with Open’s online bank account which does all of these! It’s now time to switch to virtual accounts for collections and reconciliations- trust me, your business needs it now!
