The International Bank Account Number (IBAN) is the standard for international transfers. Today, IBAN is used in 88 countries. Before IBAN’s introduction, around 10% of international transfers faced errors due to incorrect account information. Now, that error rate has dropped to a 0.1%.
Why does it matter?
If you have an iGaming business, you cannot afford not having a dedicated multicurrency IBAN. Let’s explore some of the key reasons supporting this statement.
Dedicated vs. Pooled
In most cases, you will have either dedicated or pooled IBAN, rarely both. As a starting point, it is crucial to know the difference.
A dedicated IBAN is assigned to a single business. This means all transfers are linked to one specific account and unique account number. Tracking and managing payments is easier, especially if you receive funds from multiple sources. For example, when a customer sends money, it goes straight to your business account under your name.
On the other hand, a pooled IBAN is shared by multiple users. It requires extra steps to match payments with the correct account. For example, when a customer sends money, the pooled IBAN processes it, but you must match a reference or transaction code to your business. It’s less convenient for tracking.
Some payment providers, like PayDo, offer you a choice between a dedicated and a pooled IBAN. Right after opening an account and completing verification, you get a package of available account details. While most businesses select a dedicated IBAN, it is nice to have a choice.
Multicurrency
The following important reason for having an IBAN is all the currencies coming with it. As a business, you might need to pay contractors or freelancers in their local currencies. Or might want to make international transfers to different countries. All these services rely on how “multicurrency” is your IBAN.
Opening a multicurrency IBAN at a bank or most EMIs comes at an additional cost. For example, initially, you might have five or six currencies included in your IBAN. However, you will be asked to pay extra for each currency if you want more.
Luckily, there are payment providers who are avoiding such a practice. Platforms like PayDo offer a dedicated multicurrency IBAN with 35+ currencies and 150 countries. Within SWIFT alone, you get 24 currencies available.
As a result, you can get and send payments in EUR, GDP, USD, and many more. No need to pay extra.
International Outlook
A dedicated multicurrency IBAN must be connected to well-recognized payment schemes. A payment scheme is a system that helps financial institutions send money to each other safely and quickly across different countries. When you hear “payment scheme,” think SWIFT, SEPA, and others.
As an iGaming business, you need those payment schemes connected to your IBAN. In most cases, going to EMIs means you’ll have access to SEPA. However, SEPA covers about 36 countries, most of them in Europe. Besides, with SEPA, you can make transfers in Euro only.
As an international business, you must have SWIFT. So, look for a payment provider with a great arsenal of payment schemes.
To illustrate, PayDo offers 9 payment schemes connected to its IBAN. You can easily make local and international transfers. All within one account and under one contract.
High-Risk Friendly
We all know how challenging it can be to operate as a high-risk businesses. Most often, it means you will have trouble opening a business account at a bank or making high-volume transfers. There will be many questions asked, and your transfers delayed. The reason behind that—traditional banks and many EMIs do not understand how iGaming business work.
That is exactly why a dedicated multicurrency IBAN must be issued by a payment provider that is high-risk friendly.
“The more your payment provider understands the iGaming business and industry, the fewer unnecessary documents you will provide and nonsense questions to answer.”
Basically, look for payment providers with a track record in the iGaming industry. First and foremost, check whether they have a dedicated iGaming landing page. Finally, to be called “high-risk friendly,” a provider must have these items on the checklist:
- No volume limits
- Quick onboarding
- Different iGaming licenses and jurisdictions*
* If there is a Curacao license included, you hit a jackpot.
Easy to Get
Getting an IBAN might not be an easy task. To have it, you need to open a business account. In most cases, opening such an account with a bank or an EMI might take weeks, in some cases, months.
Again, because these institutions need to understand iGaming business and digital services per se, they will ask for a myriad of unnecessary documents and might even want you to deliver those physically. As you might imagine, this process will take a long time, and a happy ending is not guaranteed.
A dedicated multicurrency IBAN should be something you can get quickly and easily. With PayDo, you can sign up for a business account, pass verification, and get a dedicated multicurrency IBAN in 48 hours or less. There will be no unnecessary documents involved or nonsense questions asked. The process is 100% remote.
Advanced Features
The truly powerful IBAN comes with some add-ons or advanced features. These are not a must. However, having them will make your life easier.
Some of the additional features to come with an IBAN are the following:
- Cross-border and third-party payments
- Transparent FX and instant conversion
- No minimums
- No hidden fees
Besides, there are things like real-time payment tracking and automatic routing. For example, if one payment route fails, the system automatically finds another route, ensuring your payment always goes through.
You want your IBAN to be displayed in a user-friendly dashboard. That way, it will be much easier to access and manage it.
A cherry on the top—virtual and physical cards. Some of the best payment providers offer corporate cards with their IBANs.
For your convenience, we found a platform with all of the above! Check it out here.
