Saxo Payments is looking to ease friction in cross-border payments through the launch of an IBAN service, the company said this week.
According to Tuesday (Feb. 14) reports, Saxo is rolling out its Banking Circle Virtual IBAN solution, a way for the financial services within Saxo's Banking Circle to provide virtual IBANs (International Bank Account Numbers) to their own clients. Doing so, Saxo explained in its announcement, means end users won't have to have their own multiple bank accounts across jurisdictions.
"Giving FX and payments businesses the ability to issue individual IBANs to their customers, in any currency required — and in each customer's name — Banking Circle Virtual IBAN is a serious game-changer in the FX payments arena," said the company's CEO, Anders la Cour, in a statement. "It eliminates the need to set up banking relationships in multiple currencies and countries, thereby enabling FX and payments businesses to offer a more tailored service to their customers."
He added that financial service providers can gain a "competitive edge" over other players that provide FX and global payment services.
Saxo's clients set up a master account linked to the Banking Circle platform, then issue a master IBAN. That client's customers can then receive any currency supported by Banking Circle.
The Banking Circle platform is a single portal to connect various players in the international payments space, with an aim to reduce the cost of global payments by lowering FX and cross-border transaction fees.