The International Bank Account Number (IBAN) is the standard for international transfers. Today, IBAN account number 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%.
What Is a Dedicated vs. Pooled IBAN Account Number?
In most cases, you’ll have either a dedicated or a pooled IBAN—rarely both—so it’s important to understand the difference between them.
Dedicated IBAN account number
This IBAN is assigned exclusively to your business. This means all transfers are linked to your specific account with a unique account number. Tracking and managing payments become easier, especially if receiving funds from multiple sources. For example, a customer sends money directly into your business account under your name.
Pooled IBAN account number
This IBAN shared among multiple users. This setup requires additional steps to match incoming payments to the correct account. For instance, when a customer sends money, the pooled IBAN processes it, but you must match a reference or transaction code to associate the payment with your business. This makes tracking less convenient.
PayDo offers you the choice between a dedicated and a pooled IBAN. After opening an account and completing verification, you will receive a package with available account details. While most businesses opt for a dedicated IBAN, having the option is beneficial.
Why Choose a Multicurrency IBAN?
One significant advantage of having an IBAN is its access to multiple currencies. As a business, you might need to pay contractors or freelancers in their local currencies or make international transfers to different countries. The ability to perform these services depends on how “multicurrency” your IBAN is.
Opening a multicurrency IBAN with a bank or most Electronic Money Institutions (EMIs) often comes at an additional cost. Initially, you might have access to five or six currencies in your IBAN. However, if you need more, you’ll typically be asked to pay extra for each additional currency.
Fortunately, some payment providers avoid this practice. PayDo offers a dedicated multicurrency IBAN that supports over 35 currencies across 150 countries. Within Cross-border alone, you have access to 24 currencies.
As a result, you can send and receive payments in EUR, GBP, USD, and many more—without any extra fees.
International Outlook
Having a dedicated multicurrency IBAN connected to well-recognized payment schemes is crucial. Payment schemes enable financial institutions to transfer money safely and quickly across different countries—think Cross-border, SEPA, etc.
For an iGaming business, it’s essential to have these payment schemes linked to your IBAN. Working with Electronic Money Institutions (EMIs) provides access to SEPA. However, SEPA covers only about 36 countries, mostly in Europe, and supports transfers exclusively in euros.
As an international business, access to Cross-border is a must. Therefore, look for a payment provider that offers a wide range of payment schemes.
PayDo connects its IBAN to nine payment schemes, allowing you to make both local and international transfers effortlessly—all within a single account and under one contract.
High-Risk Friendly
Operating as a high-risk business presents unique challenges. Often, you may struggle to open a business account at a bank or face obstacles when making high-volume transfers. You’ll likely encounter numerous questions, and your transactions could be delayed. This is mainly because traditional banks and many Electronic Money Institutions (EMIs) don’t fully understand how the iGaming industry operates.
That’s precisely why having a dedicated multicurrency IBAN from a high-risk-friendly payment provider is crucial.
To be called “high-risk friendly,” a provider must have these items on the checklist:
- No volume limits
- Quick onboarding
- Different licenses and jurisdictions*
* If a Curacao license is included, you hit a jackpot.
Getting IBAN Account Number Should Be Easy, Ideally
Obtaining an IBAN isn’t always easy. Typically, you need to open a business account, and with banks or Electronic Money Institutions (EMIs), this process can take weeks or even months.
These institutions often require unnecessary documents to understand your iGaming business or digital services, sometimes even insisting on physical copies. As you can imagine, this lengthy process doesn’t guarantee a successful outcome.
Acquiring a dedicated multicurrency IBAN should be quick and straightforward. With PayDo, you can sign up for a business account, complete verification, and receive a dedicated multicurrency IBAN in 48 hours or less. There are no unnecessary documents or irrelevant questions—the entire 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.
