Virtual IBANs and programmable wallets to receive, hold, and manage money through automated systems.
In this ever-evolving landscape of digital finance, virtual IBANs and programmable wallets are becoming essential building blocks for the platform economy. Whether you're creating a marketplace, SaaS platform, or gig platform, having the ability to receive, hold, and manage money through automated systems is quickly becoming a baseline expectation and a key driver of competitive advantage.
In this context, we’ll discuss how virtual IBANs and programmable wallets can help platforms manage payment flows, scale global transactions, automate reconciliation, and drive better conversions.
What are virtual IBANs
Virtual IBANs are digital representations of bank accounts that allow for the segregation of funds and easier tracking of transactions. One or more virtual account numbers can sit on top of physical accounts, which means all the funds are pooled together, but each deposit will have a unique bank account number reference.
From the user’s perspective, a virtual IBAN works just like a regular bank account. When the user makes a payment, the funds go to the physical account linked to that IBAN.
In the Mangopay ecosystem, we enable platforms to create virtual accounts attached to a wallet. Once created, any funds wired by the user to that linked account are credited automatically to the associated wallet.
What are programmable wallets
Before learning why virtual IBANs and programmable wallets are a powerful combination, it’s worth aligning on what we mean by wallets at Mangopay. Within our wallet ecosystem, platforms can move money on their own terms, offer various financial services to users, and issue local accounts.
A programmable wallet is a wallet that can be controlled via API and logic-based rules. It allows platforms to:
- Hold funds in different currencies
- Split or route payments automatically
- Manage or trigger payouts
- Apply compliance rules, fees, or logic per user
- Connect with cards, FX, or bank rails
In short, programmable wallets turn static fund storage into a dynamic money management layer.
Why virtual IBANs and wallets are an optimal combination
Without wallets, virtual IBANs are simply better bank accounts. With wallets, they become valuable enablers of programmable finance.
Here’s why they work so well together:
Frictionless fund collection
Platforms can assign a unique virtual IBAN to each user, merchant, or service provider. Payments sent to that virtual IBAN go directly into the corresponding wallet, allowing for instant reconciliation and access to funds.
This setup is ideal for:
- Marketplaces with thousands of sellers
- Subscription-based SaaS platforms
- Gig platforms handling high payment volumes.
Real-time fund management
Once funds are received, wallets allow for immediate access, splitting, or holding, based on the platform’s rules.
For example, on a gig platform, a EUR 100 client payment to a freelancer could be automatically split:
- EUR 90 to the freelancer’s wallet
- EUR 10 as a platform fee.
Everything is processed in real time and ready for the next step.
End-to-end automation
Instead of manual intervention or batch processing, platforms can:
- Automate disbursements based on milestones or approval flows
- Set thresholds for withdrawals
- Build compliance logic into every transaction.
This reduces manual errors and helps payment and finance teams focus on higher-value tasks as operations scale.
More support for global growth
Programmable wallets support multi-currency holding and FX capabilities. Combined with region-specific virtual IBANs (e.g., EU, UK, US), platforms can:
- Collect payments in local currency
- Increase conversions with local payment experiences
- Hold balances until favorable FX rates
- Reduce conversion fees by timing or batching.
This helps platforms expand globally without dealing with complex local banking infrastructure.
Core benefits of virtual IBANs and wallets in the platform economy
Virtual IBANs are a powerful tool for platforms, especially when integrated with wallet infrastructure. Here’s how they complement each other.
One virtual IBAN per user means clean reconciliation
Give each seller or customer a unique IBAN. Incoming payments are instantly traceable with no need to manually match references, names, or transaction notes.
Flexible account setup for global operations
Platforms can create multiple virtual IBANs, each connected to a wallet, to manage payments across different countries. This removes the need to open traditional bank accounts in each region, while still enabling local payment flows, fee management, and refunds.
Faster settlement and access to funds
Virtual IBANs reduce the need for banking intermediaries. Payments flow directly into the platform’s wallets, speeding up settlement times and improving the user experience with faster availability of funds.
Trust and transparency
For users, having their own IBAN feels similar to having a bank account. This builds trust and simplifies common tasks like invoicing, audits, or tracking incoming payments.
Multi-currency flexibility
Platforms can offer country-specific IBANs (e.g., DE for Germany, FR for France), enabling local currency collection. This creates a local payment experience while reducing FX costs for the platform.
Improved payment operations and reporting
All payments are automatically categorized, mapped, and reported per user or channel. That means fewer errors, faster reconciliation, and better control over platform cash flow.
The bottom line
Virtual IBANs and wallets each solve different challenges and play their own role in optimizing payments. Together, they unlock a new tier of capability for platform businesses. Virtual IBANs provide every user with a bank-like identity. Wallets unlock what happens next, turning structured incoming payments into flexible, rule-based value-generating user flows. Combined, they allow platforms to build tailored financial experiences at scale.
For platforms aiming to own more of their financial stack and turn payments from a cost center into a profit engine, virtual IBANS and wallets are the path forward. Leading platforms like Malt, Paybyrd, Aria, Seedrs, and ManoMano have already seen the impact of this combination: faster settlement times, automated fund reconciliation, and simplified global transactions, all within a single, integrated solution.
Ready to combine virtual IBAN precision with wallet power? We’re here to help you find the right solution for your platform’s needs. Contact us.
