Virtual Bank Accounts: Your Gateway to Easy Global Transfer
Doing business globally has never been easier, until it’s time to get paid.
If you're an exporter, freelancer, or SaaS founder in India, you probably know the struggle. You finish a project or ship a product overseas… and then begins the long wait. Between delays, surprise deductions, poor exchange rates, and a ton of paperwork, getting your money from international clients can feel like a second job.
That’s where virtual bank accounts come in, and they’re changing the game.
Think of them as local bank accounts in the countries you do business in, without needing to actually open one abroad. You get paid like a local, skip the heavy banking charges, and see your money land in your Indian account faster and in full.
In this blog, we’ll walk you through:
- What a virtual bank account really is (and how it works)
- How it helps Indian businesses get paid faster and cheaper
- Steps to open one, even if you're just starting out
- And how platforms like Skydo are making this process super simple
Let’s make international payments one less thing to worry about.
What Is a Virtual Bank Account?
A virtual bank account is like a digital address for your international payments. It’s not a physical account you walk into, instead, it’s a unique account number (usually 18 digits) linked to your real Indian bank account.
When your overseas client pays you through this virtual account, the money is instantly routed to your actual bank account, without you needing to open a bank account in that country.
Now, here's the key difference: Virtual accounts don’t hold money; they just receive and forward it. Think of them as smart couriers that collect funds and drop them directly into your home bank, minus the usual chaos of SWIFT delays or form-filling marathons.
So why are exporters and freelancers making the switch?
More Privacy
You don’t have to share your actual bank account details with clients. That’s one less exposure point.
Better Payment Tracking
Working with clients across the US, UK, EU, and beyond? You can set up a virtual account for each region. That means payments in different currencies, all tagged to the right client, making reconciliation smooth and stress-free.
How Do Virtual Bank Accounts Work?
At their core, virtual bank accounts are like “mirrors” of real bank accounts. They don’t actually hold funds, but act as smart collection tools designed to receive money, identify where it came from, and route it to your primary bank account.
Let’s break that down with a simple example:
Say you're an Indian freelancer working with clients in the US, UK, and Singapore. Instead of asking them to make an international wire transfer to your Indian bank account (which can take days and involve hefty fees), you generate a virtual account in each client’s region.
Each virtual account:
- Has a local account number (e.g., a US ACH number or UK IBAN)
- Can receive payments in that local currency
- Automatically routes the funds to your linked Indian bank account after conversion
So when your US client sends you $1,000 to your US virtual account, they’re doing a local transfer, just like they would to a US-based vendor. That money is received by your virtual USD account, converted into INR, and credited to your Indian bank account, all behind the scenes.
This setup does three things:
- Avoids international SWIFT transfers (and the associated delays)
- Minimizes conversion loss by using mid-market exchange rates
- Keeps all your payments organized by region or client
Virtual accounts are especially helpful when working with multiple clients or marketplaces, letting you track payments separately without opening and maintaining multiple physical bank accounts abroad.
They’re not magic, just smart infrastructure layered on top of traditional banking rails.
Why Virtual Bank Accounts Work Better for Global Payments
Whether you're a freelancer, exporter, or SaaS business dealing with overseas clients, virtual bank accounts offer a smoother, faster, and more cost-effective way to get paid. Here’s how:
1. Faster Settlements = Better Cash Flow
With traditional bank transfers, your international payments can take anywhere from 3 to 7 days to land in your account, especially if they go through SWIFT. That’s a lot of waiting, and for a business, delays hurt.
Virtual bank accounts cut this down drastically. Platforms like Skydo settle your payments within 24 hours of receipt, helping you maintain liquidity and plan cash flow more confidently.
2. Lower Fees, Higher Earnings
Traditional methods come with hidden costs: SWIFT charges, poor exchange rates, and service fees that chip away at what you actually receive.
With virtual accounts, you bypass SWIFT entirely. Plus, platforms like Skydo offer live exchange rates with zero markup, so you get the full value of your earnings, not just what’s left after deductions.
3. Built-in Privacy & Security
Your virtual account is linked to your real bank account, but it doesn’t expose it. That means when you share your virtual account details with clients, your primary bank info stays private.
These accounts also come with features like:
- Real-time fraud monitoring
- End-to-end encryption
- Multi-factor authentication
Even if someone gets access to your virtual account number, they can’t use it to touch your funds.
How to Open a Virtual Bank Account in India (Without Any Red Tape)
Setting up a virtual bank account might sound complex, but in reality, it’s much easier than opening a traditional foreign bank account.
Here’s how it usually works:
Step 1: Choose a Trusted Platform
Look for an RBI-authorised cross-border payments platform like Skydo that offers virtual account services tailored for Indian exporters, SaaS businesses, and freelancers.
Step 2: Complete KYC Digitally
Submit your business details, PAN, GSTIN (if applicable), and bank account information. Platforms like Skydo allow you to complete the entire KYC process online, no branch visits or paperwork required.
Step 3: Get Your Virtual Bank Accounts
Once verified, you'll receive virtual account numbers in key regions like the US, UK, EU, Singapore, Australia, and more. These accounts come with local details like IBANs or routing numbers, making it easy for your clients to pay you like a local.
Step 4: Start Receiving Payments
Share these account details with your clients. When they pay you, the funds are automatically routed to your linked Indian account. With Skydo's virtual bank account, you usually receive your payments within 24 hours, with live exchange rates and no hidden markups.
Who Can Use Virtual Bank Accounts?
Virtual bank accounts aren’t just for big businesses or finance pros — they’re built for anyone who earns across borders. Here’s how different types of users benefit:
Freelancers
If you're a freelancer working with international clients on platforms like Upwork, Fiverr, or through direct gigs, a virtual bank account makes it easy to get paid like a local. Instead of high PayPal fees or long wait times, you can receive payments faster, with better exchange rates, and even get FIRA for tax compliance.
Example: A designer in Jaipur can now receive USD from a US client into a virtual US account and get INR in their bank within 24-48 hours, without worrying about SWIFT delays or high forex markup.
Exporters
For small and medium exporters, especially from Tier 2 and Tier 3 cities, virtual accounts simplify what used to be a paperwork-heavy process. You get global virtual collection accounts (like a US routing number or a UK IBAN), and your clients can pay like they’re making a local transfer.
It’s faster, cheaper, and you get the compliance documents like FIRA automatically.
SaaS & Tech Businesses
SaaS companies billing international customers often struggle with reconciling multi-currency payments or managing multiple accounts. Virtual accounts let you:
- Receive in multiple currencies
- Keep client payments organised
- Convert to INR when rates are favourable
It’s ideal for businesses scaling globally without opening foreign bank accounts or paying unnecessary overhead.
Virtual Bank Accounts by Skydo: Built for Indian Freelancers & Exporters
Skydo makes it easy for Indian businesses and freelancers to receive international payments without the usual headaches of high fees, hidden markups, or long settlement times.
You get virtual accounts in key markets like the US, UK, Europe, Australia, and Singapore all set up in minutes, fully compliant with RBI norms.
What makes Skydo different?
Live exchange rates: You get paid at the actual mid-market rate (yes, the one on Google) with zero markup.
Transparent pricing:
$19 for payments below $2,000
$29 for payments between $2,001–$10,000
0.3% fee for payments above $10,000
No hidden fees: No SWIFT charges, no surprise deductions.
Instant FIRA: GST-compliant FIRA is auto-generated after each transaction, no chasing banks, no manual forms.
Get paid on time: Send clean, professional invoices and set up reminders with just a few clicks.
Thousands of Indian freelancers and MSMEs already use Skydo to manage their global payments. You can get started for free in 5 minutes — no paperwork, no waiting.
How Long Does It Take to Receive Payments in a Virtual Bank Account?
Ans: The time taken to receive payments in a virtual bank account depends on the payment method and the platform. Typically, local transfers and processed instantly or on the same day. In the case of an international wire transfer, it can take 2 to 5 business days.
What Documents Do I Need to Open a Virtual Bank Account?
Are Virtual Bank Accounts Suitable for Freelancers?
Are There Any Fees Associated with Using a Virtual Bank Account?
Is It Safe to Use Virtual Accounts?
