A virtual IBAN, or vIBAN, is a unique bank account reference used to receive and identify payments without creating a separate physical bank account for each payer, merchant, or transaction flow.
A virtual IBAN looks like a regular International Bank Account Number, but it is usually linked to a master account or pooled account held by a bank, EMI, PSP, or payment provider.
In simple terms, a virtual IBAN helps businesses know which customer, merchant, invoice, or account a bank transfer belongs to.
A business or payment provider can assign a virtual IBAN to a specific customer, merchant, wallet, invoice, or payment flow.
When money is sent to that virtual IBAN, the funds are received through the underlying real account. The virtual IBAN acts as an identifier, allowing the payment system to recognize where the funds should be allocated internally.
For example, a PSP may assign a separate virtual IBAN to each merchant. When incoming bank transfers arrive, the PSP can automatically match each transfer to the right merchant balance or payment record.
Virtual IBANs are commonly used for:
They are especially useful when a business receives many bank transfers and needs to match each payment to the correct account, invoice, or customer.
