A virtual bank, also referred to as an online bank, is a financial institution that offers banking services through digital platforms like websites and mobile apps. You can perform various banking activities online, including account opening, fund transfers, bill payments, and accessing financial services and products.
What Is the Advantage of Virtual Bank?
- Multicurrency account: Hold and manage funds in multiple.
- Non-resident account options: You do not have to reside in the country where the bank is located.
- Virtual cards: Easy and secure way to make online purchases.
- Low fees: Virtual banks are known for their low fees compared to traditional banks.
- Cryptocurrency: Crypto-friendly banks offer enable users to buy, sell, and hold cryptocurrencies within their accounts.
How to Open Virtual Bank Account
Here are the general steps on how to open a virtual bank account:
- Choose a virtual bank. Compare different virtual banks based on their fees, features, and the countries they are available in.
- Visit the bank’s website or download their mobile app. Look for the option to open an account.
- Provide your personal information. This will include your name, address, and date of birth.
- Verify your identity. The virtual bank will ask you to verify your identity by providing a copy of your driver’s license or other government-issued ID.
- Activate your account. You will need to activate it. This usually involves clicking on a link in an email or text message from the virtual bank.
- Fund your account. You can fund your account by linking it to a traditional bank account, making a wire transfer, or depositing a check.
Once your virtual bank account is activated, you can start using it like any other bank account. You can make deposits, withdrawals, and transfers as needed. Additionally, you can conveniently pay bills, and even set up direct deposits for your salary.
Open Virtual Bank Account Online
If you would like to open an international virtual bank account, these are some of your options. With these banks, opening a virtual bank online is simple and straightforward. Here is a list of some popular virtual banks that offer online account opening:
Wise (Formerly TransferWise)
Wise Multi-currency, formerly TransferWise, is an online bank that provides virtual IBANs and a multicurrency account that allows individuals and businesses to hold and manage funds in multiple currencies. With a Wise multicurrency account, you can send, receive, and hold money in over 50 currencies.
It also offers non-resident accounts that provide you with local bank details in various countries, such as the United States, the United Kingdom, Australia, and the Eurozone. This allows you to receive payments from international clients or marketplaces such as Amazon as if you had a local bank account in those countries. It’s particularly advantageous for freelancers, international businesses, and e-commerce sellers who deal with cross-border transactions. Additionally, Wise Multi-currency offers other products such as the Wise debit card.
N26 is a German online bank that provides virtual bank accounts with a European IBAN in the SEPA region and the United States. It offers both personal and business accounts, along with a physical debit MasterCard and a virtual card.
One of the notable features of N26 is its partnership with Wise, which allows for cheaper and easier international money transfers. N26 also enables customers to trade cryptocurrencies directly within the N26 banking app, providing a convenient way to manage and monitor both cash and crypto assets in one place. However, N26 Crypto is only available in Austria, Germany, Switzerland, Belgium, Portugal, and Ireland to eligible customers.
N26 operates under a full German banking license, ensuring regulatory compliance and customer protection. With a bank account from N26, which includes a German IBAN, deposits up to €100,000 are protected according to EU directives.
Payoneer is a US online payment platform available in over 200 countries that offers a variety of financial services, including a virtual multicurrency account. With a Payoneer virtual account, individuals and businesses can conveniently manage funds in multiple currencies, making it ideal for international transactions. One of the notable features of Payoneer is its ability to open a US non-resident account. This allows individuals who are not residing in the United States to have a US bank account, which can be beneficial for various purposes such as receiving payments from US-based clients or participating in US-based marketplaces.
In addition to the virtual account, Payoneer provides the option of obtaining a Payoneer debit card and a Payoneer virtual card. It has also gained popularity among global freelancers and international suppliers. Moreover, it serves as a reliable bank account for Amazon sellers.
bunq is a fully licensed bank based in the Netherlands that offers a range of banking services, including a multicurrency account. With the bunq multicurrency account, you can conveniently hold and manage funds in different currencies, allowing for easy international transactions and currency conversions. One notable feature of bunq is its ability to provide European non-resident accounts, allowing individuals from various countries to open an account with bunq.
bunq provides IBAN (International Bank Account Number) and SEPA (Single Euro Payments Area) capabilities, making it easy to send and receive payments within the SEPA region and internationally. Both personal and business accounts are available with bunq. For business accounts, it’s important to note that the business must be registered in specific countries, including the Netherlands, Germany, France, Italy, Spain, Austria, Belgium, or Ireland.
Debit cards are also offered by bunq. bunq’s Travel Card is a popular product among frequent travelers. As a fully licensed bank in the Netherlands, bunq ensures that clients’ funds are protected by the Dutch Deposit Guarantee up to €100,000. This provides peace of mind and security for account holders.
Revolut is a leading online bank that offers a multicurrency account to allows you to hold and manage funds in multiple currencies. It also allows you to open non resident accounts even if you don’t reside in the country where Revolut operates.
With personal and business IBAN bank accounts available in popular currencies like EUR and GBP, you can easily receive and send payments across borders. Revolut also provides convenient money transfer and currency exchange services, offering competitive rates and eliminating the need for traditional banks or currency exchange services.
Revolut provides users with physical MasterCard/Visa debit cards and virtual cards, making it easy to access and use funds for online and offline purchases. Additionally, Revolut crypto service allows you to hold, buy and sell bitcoin.
Monese offers a user-friendly and accessible banking experience for individuals residing in the European Economic Area (EEA). Regardless of citizenship or financial history, anyone who is at least 18 years old and an EEA resident can open a Monese bank account. A standout feature of Monese is its multicurrency accounts, supporting currencies like GBP, EUR, and RON. This allows users to conveniently manage funds in multiple currencies.
Monese offers various account types to cater to different needs, including personal, business, and joint accounts. Additionally, users can enjoy the convenience of a virtual card for online transactions and payments. By linking their Avios and PayPal accounts to their Monese account, users can easily track their finances and balances. Furthermore, Monese provides assistance in 15 European languages, ensuring customers can receive support in their preferred language.
Rewire (Bank for Migrants in Europe)
Rewire is an online bank that offers banking and money transfer services online to documented migrants in Europe. Rewire account comes with a European IBAN account and international debit/prepaid Mastercard and a virtual card.
Rewire customers include migrants from Europe, Asia, and Africa. You can send money to several countries using Rewire. Some of the countries are Nigeria, the Philippines, Nepal, Uganda, Ukraine, Kenya, South Africa, India, Sri Lanka, China, Senegal, Thailand, and Ghana.
Virtual Banks in Select Countries
- Virtual bank in US
- UK virtual bank list
- Virtual bank account in Ireland
- Virtual bank in Italy
- Virtual bank in Nigeria
Open Virtual Bank Account Online: Best Virtual Banks
Virtual bank account providers have transformed banking for individuals and businesses. These online banks offer convenient and accessible solutions that allow users to open accounts, conduct transactions, and access various financial services from their devices.
With features such as multicurrency accounts, non-resident account options, and seamless integration with other services, virtual bank account providers cater to a global customer base. The ability to facilitate international money transfers, provide competitive currency exchange rates, and manage funds across different accounts and platforms has made virtual banking a popular choice for many. Additionally, the inclusion of cryptocurrency services adds another dimension to the offerings of these virtual bank account providers.
What's a virtual bank?
A virtual bank, also referred to as an online bank, is a financial institution that offers banking services through digital platforms like websites and mobile apps.
How do I deposit cash into a virtual bank?
Virtual banks do not accept cash deposits. You can fund your account by linking it to a traditional bank account, making electronic transfers, or depositing checks through digital platforms.
Is N26 no longer in the UK?
Yes, N26 is no longer available to UK customers.
Are virtual banks secure?
Yes, virtual banks are secure. They use the same security measures as traditional banks, such as encryption and firewalls.
How to withjdraw money from virtual banks
To withdraw money from a virtual bank account, you can use the provided debit card or virtual card at ATMs, request a wire transfer, receive a check, use the bill pay feature, or take advantage of cashback options at certain stores.
What is the difference between virtual banking and internet banking?
Virtual banking and internet banking are both digital banking methods, but virtual banking is exclusively online and does not have physical branches, while internet banking combines online services with physical branch access.