The rise of online spending, global business, and e-commerce means that digital wallets and e-wallets are now in widespread use.
Any online or mobile service that provides a way to send and receive funds can be considered a digital wallet or “e-wallet.” Popular digital wallets include Cash App, Apple Pay, Google Wallet, Paypal, and Venmo. At Payset, we offer our own digital wallet as part of our multi-currency accounts.
Digital wallets can also be used in conjunction with traditional bank accounts and IBAN accounts.
Here’s how they work:
How do I transfer money with an IBAN number?
Yes, you can transfer money to and from any account with an IBAN number.
To receive money in an IBAN account, you must provide the sender with your own IBAN number. You can find this number in your online bank account, on a bank statement, or through your bank’s support line. After you provide your IBAN number to the sender, they must initiate a transaction and direct it to your IBAN number.
To send money to an IBAN account, or transfer money via an IBAN number, you must request a transaction from your bank or payment service. You’ll need to provide the recipient’s IBAN number to the service.
If you’re sending money to an individual, you’ll need to ask the recipient for their IBAN number. Or, if you’re sending money to a business or other organization, you may be able to find their IBAN number on their public website.
Can I Transfer Money from a Digital Wallet to a Bank Account?
Most digital wallets, including Payset’s own e-wallet, allow you to transfer funds to and from a bank account.
To send money to a bank account, open your digital wallet and input the IBAN number of the bank account that you wish to send funds to. You can send money to your own bank account or to another person’s bank account in this way.
You can also transfer money out of an IBAN account and deposit it into your digital wallet. You can fund your wallet from your own account or receive funds from someone else. This is typically necessary if you want to add a balance to your wallet.
Can I Transfer Money Between an IBAN account and a Bank Account?
You can transfer funds between any two IBAN accounts. Typically, sending funds with an IBAN number involves ordering a wire transfer over the SWIFT messaging network. You must provide the recipient’s IBAN number and other details to route the transaction to its destination.
In Europe, it is also possible to transfer funds between IBAN accounts through non-SWIFT networks, such as SEPA, Faster Payments, and CHAPS.
Bank accounts that do not use IBAN numbers, such as those in the United States, can also send funds between one another. These banks may use SWIFT wire transfers, or they may use alternate settlement networks or other electronic transfer systems.
Ultimately, you can transfer funds between any two bank accounts almost anywhere in the world, whether both of those accounts use an IBAN number or not.
What is the Difference Between an IBAN account and a Digital Wallet?
Digital wallets are provided by online payment services. Users can hold monetary balances, often in multiple accounts and currencies, in a single digital wallet.
Digital wallets can be accessed by logging into a website or a mobile app. Users can spend funds stored in their wallet on websites that support the app or in public through point-of-sale terminals that support the app.
Digital wallets can use various technologies, including QR codes, near-field communication (NFC), and magnetic secure transmission (MST) to send and receive data. Some of these technologies are also used with traditional payment cards.
By contrast, an IBAN account is a traditional financial account. An IBAN account is usually provided by a bank, and users typically access these accounts through an online account or by visiting their local bank branch.
IBAN accounts and IBAN numbers are often used to send and receive funds through banking networks like SWIFT. However, many IBAN accounts also include a debit card or chequing service that allows users to easily spend their money. As a result, it is possible to send money with an IBAN account to various destinations.
At Payset, we combine both types of service. All registered users have access to digital wallet features alongside IBAN-numbered accounts.
Is it safe to transfer money with an IBAN?
Transferring money with an IBAN is rarely dangerous. It’s safe to give out your IBAN number and related banking information when you are preparing to receive a payment.
In fact, IBAN numbers are meant to be shared. An IBAN number only contains information that can be used to receive funds—it can’t be used to move money out of your account.
Even though sharing your IBAN number is safe, it's important to be aware of IBAN fraud. Scammers can intercept transactions by impersonating a participant on either side of a transaction and claiming that they have changed their IBAN number.
The scammer can then receive a payment that someone meant to sent to you, or they can intercept a payment that you intended to send to someone else.
As such, it's important for all parties to fully verify each other’s IBAN number before proceeding with a transfer via IBAN. Be sure to give out only information that is necessary for the transfer, and be sure to contact your transaction partner in a trusted way.
If you are a victim of this type of fraud or your funds are erroneously received, your bank or other service provider may be able to reverse the transaction.
How Payset Can Help
Payset provides digital wallets and IBAN numbers for all multi-currency accounts.
We facilitate access to multiple payment networks including SWIFT, SEPA, Faster Payments (FPS), CHAPS, and more. Plus, we support over 38 major international currencies and serve more than 180 countries, making our service one that caters to a global user base.
We also provide top-of-the-line security for all funds. Payset segregates client funds from its own balances according to regulations. Client funds are safeguarded with a EU-regulated bank, which protects user funds in the event that Payset fails or becomes a victim of fraud.
Payset offers one of the simplest ways to quickly open a digital wallet and a virtual IBAN account.
Click below to sign up or to find out more.
