The world keeps evolving, and technologies keep advancing. Thanks to global digitalization, more and more people are embracing living in a cashless world.
In Nigeria, the cashless policy has been on for a while and has significantly impacted how businesses and customers interact. Many customers, rather than having to look for cash, prefer to use alternative methods to pay for goods and services. As a result, businesses have had to adapt quickly to accommodate the new development. Now, most businesses accept bank transfers or the use of debit cards to make payments for goods and services.
However, bank transfers can present several challenges for small business owners and big enterprises alike. Delays in receiving payments, bank network problems, and transfer fees are problems that businesses can encounter. Hence, there is a need for a more efficient payment system, like virtual accounts.
This post will walk you through what a virtual account is and why you need to open a virtual account for your business. Stay with us.
What is a Virtual Account?
In simple terms, virtual bank accounts are non-physical accounts that you can fully operate through a mobile or desktop interface and offer access to various financial services. You may also refer to them as digital bank accounts and they allow you access to services like creating an account, checking account information, making deposits and withdrawals, making bill payments, and so on—all without visiting a bank location. A virtual bank account offers you everything that a traditional bank does, except that you don’t need to waste time in any banking hall. With a smartphone and internet connection, you have the luxury of carrying out financial transactions without taking a step out of your house.
A virtual account enables businesses to automatically track payments more effectively and efficiently.
Why You Need a Virtual Account for Your Business
If your business has high daily transactions, you must understand firsthand how payment reconciliation can be a major challenge. Keeping track of payments that customers make manually can be overwhelming, time-consuming, error-prone, and overall detrimental to your business operations.
That’s why there’s a high demand for a better alternative such as a virtual account which offers more efficiency. With a virtual account, you can accurately track and manage individual payments by automating all payments in real-time.
The following are some of the reasons you need to consider creating a virtual account for your business.
Automated Payment Reconciliation
This is one of the primary advantages that a virtual account offers your business. For businesses that receive thousands of transactions per day, tracking payments can be overwhelming and tedious. However, a virtual account solves this problem by mapping all payment collections from each customer with a simple process.
Lower Transaction Fees
Compared to bank transfers, virtual accounts significantly reduce the cost of payment fees. You don’t have to pay a percentage of the transaction amount each time money goes into your business account. A virtual account allows you to pay a flat fee for each of the transactions you make on the account.
Plus, the operating and maintenance of a virtual account significantly costs less compared to a traditional account.
Streamlined Operations
A virtual account can give your company a centralized structure which helps to improve transparency and visibility. With a virtual account, you have greater transparency about where and how money is flowing into your business.
Budget planning and account management are also way easier with virtual banks. This is because of the customizable nature of virtual banking which provides features like round-up savings and saving targets.
Enhanced Transaction Speed
One of the most annoying problems that affect customers and business owners alike is delayed payments. People want to be able to conduct transactions swiftly and seamlessly.
Virtual accounts have become popular due to their ability to process transactions very swiftly.
Advanced Security
Virtual banking ensures that your security is covered at all times. For example, Changera uses high-end encryption of users’ details to ensure that there is less risk of compromise of customers’ data. In addition, there are multi-factor authentication and biometric login features to mobile apps and websites for added protection against online scams.
Open a Virtual Account with Changera
As time passes, virtual banks are steadily becoming more accepted and the trend of traditional banks is slowly reducing. One major factor contributing to the rise in virtual bank accounts is the convenience that they offer. Virtual banks are making the most of modern technology to provide the most innovative services to their customers.
Nevertheless, choosing between a physical and virtual account will depend ultimately on your business needs.
When considering a virtual bank to choose from, there are numerous factors to consider, including convenience and flexibility with technology. Also, you need to identify the current payment problems your business could be experiencing and find the right solution. Thankfully, a platform like Changera offers all these benefits with its unique features and services. By partnering with a payment solution like Changera, you’re in for a smooth ride with your business operations.
Download the Changera mobile app from the Google Play Store or App Store to start.
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