Through ClearBank’s integration, new and existing merchant customers of Fondy will have access to virtual IBAN accounts and the GBP payments network: Faster Payments, CHAPS, and Bacs. This will enable faster and more efficient transactions at a greater scale and support new product offerings such as multi-currency business accounts. This access to global payment networks in several currencies will help businesses to provide better cashflow from online sales.
A virtual IBAN is an IBAN reference issued by a bank to allow incoming payments to be rerouted to a different, physical bank account. These accounts can be used to send and receive payments worldwide, allowing businesses to extend their value chain to provide settlement services to its global customers.
Simplifying cash management and money movement for multiple currencies will allow Fondy to help clients reach their objectives. Clients will be able to receive funds from their customers within the same day using Fondy Flow IBAN accounts, improving their cashflow from online sales. The access to several payment networks in the world in several currencies will help Fondy’s customers by providing cashflow benefits, among other things.
Virtual IBANs offer companies the same facilities as a traditional settlement account, however, they reduce costs involved in opening and managing a physical account. A virtual bank account allows access to payment services without the cost and complexity of a full business bank account. Potential administrative costs are further reduced through the use of virtual IBAN.
As online merchants need payment solutions and services that meet their custom and specific business needs, virtual IBANs has become the preferred choice, as it not only makes international trade online easier and more efficient, but it is also much more efficient in financial terms for the account holder.
Virtual IBANs bring together multiple streams of financial information into one location. This allows for reporting, analysis, and gives businesses actionable data within seconds. Moreover, it is an easy way to improve the compliance process and open up the market to a global audience.
In March 2022, ClearBank announced a GBP 175 million equity investment, planning to expand its range of products and services to include direct API-based access to interbank payment schemes such as SEPA, improved multi-currency accounts, and additional FX services.
Later in the year, ClearBank started a series of partnerships. It is now providing agency banking services to Ziglu, a UK-based money app, enabling it to offer virtual GBP accounts to its customers. ClearBank’s platform gives Ziglu’s end-customers safeguarded accounts, removing third-party credit risk. The two firms are exploring a future phase of the partnership to offer FSCS protected accounts to Ziglu's customers.
The most recent partnership is the one with Kroo. ClearBank has worked with Kroo for the duration of its journey towards becoming a fully regulated bank, providing the technical and regulatory support. Kroo has secured a full UK banking licence and ClearBank continues to support the company on its mission to build a fully licenced social bank.
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