The launch of Virtual Accounts further solidifies Modern Treasury’s leadership in enabling companies to modernize, automate and accelerate payments. Annually, more than $750 trillion in bank transfers occur each year via wire, ACH and checks. Many of these payments, especially those between companies, take one to three days to clear and finance teams spend hours tracking them from initiation and approvals to accounting and reporting. Modern Treasury offers a single API into the global banking system, as well as software to support finance and treasury teams, so that each step of the process is automated.

With Modern Treasury’s Virtual Accounts, organizations will have instant real-time visibility into payments —where they come from and why— which helps streamline the reconciliation of incoming payments.

The launch follows Modern Treasury’s recently released Ledgers product, which helps companies automate recording financial transactions using double-entry bookkeeping. Combined with direct bank integrations and support for multiple payment methods, Virtual Accounts and Ledgers allow customers to reconcile payments and track balances and transactions for users within their apps and products.

“There is a lot that is fundamentally broken about money movement that we’re solving for businesses. Virtual Accounts and Ledgers are key pieces of that solution, tracking the source and purpose of funds in your bank accounts,” said Dimitri Dadiomov, Modern Treasury CEO and co-founder. “There’s much more to money movement than just moving money. Whether companies need one product or both, along with our broader platform, Modern Treasury can now meet their precise needs as they modernize their payment operations.”

With Virtual Accounts, companies can create unique account numbers for their clients that are nestled under the primary account. These sub-accounts act like regular bank accounts, but received payments settle in the primary bank account, making it easy for the company to understand the source and reason for a payment.

Companies with complex payment flows, like neobanks, will find Virtual Accounts particularly useful. Neobanks process payments on behalf of a large number of users each day, which means they need a reliable system to efficiently track and attribute transactions and balances to users.

Virtual accounts are also widely used by digital wallets and fintechs offering basic banking services, like account and balance tracking, as part of their digital products. Modern Treasury’s Ledgers product allows customers to maintain ledgers for user balances and match them perfectly against incoming and outgoing line items on bank statements and Virtual Accounts.

"Revolut is building the world's first global financial super app and Modern Treasury's Virtual Accounts product is a critical component of our banking services in the United States," says Ronald Oliveira, CEO of Revolut US. "It enables our customers to easily send and receive ACH and wire payments, equipping our team with the tools to deliver the best user experience."

Modern Treasury's payment operations solutions enable companies to automate the entire payments lifecycle from initiation to reconciliation and accounting all through one platform. In June, Modern Treasury reconciled over $2 billion in payments up from $100 million in August 2020.