Virtual Account

Virtual accounts are instantly activated accounts that can be created using basic details such as name, mobile number, email address, communication address, and PAN. Unlike physical accounts, virtual accounts do not require KYC verification or physical verification of the account holder. This allows you to quickly and easily create virtual accounts as per your business requirements.

We offer 2 types of virtual accounts:

• Wallets
• Collection Tools

Wallet

Functionally, wallets are similar to physical accounts. They come with an account number, IFSC, and VPA handle and can be used to accept payments and make transfers. Wallets are not linked to another physical account. Money deposited or paid to a wallet remains in the wallet till it is transferred to another account.

After the account is activated, you can allow the account holder to perform the following actions using our APIs.

• Add a bank account beneficiary.
• Add a VPA beneficiary.
• Transfer money to the beneficiary.
• Check account balance.
• Get account statement.

Use Case 1

As a business, you might want separate accounts for payables and receivables. However, you might not want to go through the hassle of opening and maintaining multiple current accounts. You can use virtual accounts as an alternative.

You can easily and quickly create virtual accounts and use them for your payables and receivables. You can transfer money to and from your current account to the virtual accounts as per your business needs.

Use Case 2

As a marketplace, you allow sellers to sell their goods and services to users. You want to allow small-scale sellers and individuals to sell on your market place too. These sellers might not have current accounts where they can accept payments from buyers. In such scenarios, you can create virtual account wallets for the sellers.

When placing an order, users make payments to your account instead of the seller's account. After the goods or services are delivered to the user, you transfer the money to the seller's virtual account wallet. Sellers can transfer money out of their virtual account wallet as and when required.

Having buyers make payments to you instead of the seller, allows you to easily process refunds and reduce the chances of fraud

Collection Tool

Traditionally, businesses receive payments as cash or as transfers to their current account. Keeping tabs on cash payments is a hassle. Money can be easily misplaced or spent without proper accounting. Receiving money directly into your bank account does solve these problems, but it does not solve the problem of payment reconciliation. The only way for you to reconcile payments is to rely on the bank account statement. Not only is this a tedious process, bank account statements often do not have the necessary information for you to reconcile payments.

Virtual account collection tools are designed to help make payment reconciliation easier. Similar to wallets, collection tools come with their own account number, IFSC, and VPA handle. However, unlike wallets, collection tools do not have their own balance and cannot be used to make transfers.

Collection tools can only be used to receive payments. Money received by a collection tool does not remain in the collection tool. It is immediately transferred to your ZWITCH Primary Account.

Use Case 1

You are a Non-Banking Financial Company (NBFC). You disburse loans to your customers. Customers repay the loan as EMIs. Traditionally, you would share your current account details with your customers who would make payments to the account. Receiving EMI payments from all your customers in one account makes it hard for you to keep tabs on who made their payments on time and who defaulted on their payments. Payment reconciliation is a hassle too.

With collection tools, you can create a collection tool for each customer and share details of the collection tool with your customers. Customers can make payments to the collection tool. This makes payment reconciliation easier for you. All money received by the collection tool is transferred to your ZWITCH Primary Account ensuring you have funds available for your operations.

Use Case 2

You are a business that supplies goods and services to multiple customers. Traditionally, you would share your current account details with your customers who would make payments to the account. Receiving payments from multiple customers in one account makes it hard for you to keep tabs on who made their payments on time and who defaulted on their payments. Payment reconciliation is a hassle too.

With collection tools, you can create collection tools and share the collection tool account details with your customers. Customers can make payments to the collection tool. This makes payment reconciliation easier for you. All money received by the collection tool is transferred to your ZWITCH Primary Account ensuring you have funds available for your operations.

Wallet vs Collection Tool

The table below compares virtual account wallets and collection tools.