What is an IBAN?

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IBAN is an acronym for international bank account number — a globally recognised code that helps banks identify the correct account for international transfers. It functions like a bank account number, but with added details to ensure funds reach their intended destination.

Components of an IBAN

An IBAN consists of several parts, each serving a specific function.

Here is a fictional IBAN example: GB29NWBK60161331926819.

Its key components are as follows:

• Country code. The first two letters of an IBAN represent the country where the bank account is held. In this example, the country code is GB (Great Britain), which indicates the account is based in the UK. This code helps identify the country involved in the transaction.
• Check digits. The next two digits in the IBAN (29) are the check digits. These are used to validate the rest of the IBAN, ensuring that the number is entered correctly and helping to prevent errors during the transfer process.
• Bank identifier. Following the check digits is the IBAN bank identifier code (NWBK), which represents the specific bank. This part of the IBAN ensures that the payment is directed to the right financial institution.
• Account number. The final portion of the IBAN is the unique account number (60161331926819). This ensures that the payment reaches the correct account within the specified bank. The account number is often the longest part of the IBAN and varies in length depending on the country’s IBAN structure.

Examples of IBAN usage

An IBAN is commonly used in several scenarios, especially when checking the details of a bank transfer:

• International payments. When sending or receiving money across borders, an IBAN for international payments ensures that funds reach the correct bank account.
• International online shopping. Many retailers ask for an IBAN to process payments for purchases made from abroad.
• Bank account verification. Some banks use IBANs to verify bank account details, especially during international transfers, ensuring that both the sender and receiver's information is correct.
• International trade. Businesses involved in import/export frequently use IBANs to send money overseas or to receive funds from foreign suppliers or customers.

How to find an IBAN

From banking documents to digital tools, there are several ways to find an IBAN. Below are the most common methods:

• Bank statement. The IBAN can be found on printed or digital bank statements. It's typically listed alongside the bank account number and sort code, the six-digit number that identifies the bank itself.
• Mobile app. Most banks provide access to IBANs through their mobile apps. Users can log into the app and navigate to the account summary or details section to find the IBAN.
• Online banking. Logging into online banking through a web browser also provides access to the IBAN. It can be found in the account details section.
• Contact the bank directly. For those who prefer speaking with someone, the IBAN can be obtained with a quick call or visit to the bank. Most banks provide this information upon request.
• IBAN calculator. Some banks offer an IBAN calculator online, which allows users to find their IBAN by entering their bank account number and sort code.

PayPal digital wallet: Your global money transfer solution

PayPal’s digital wallet is a simple and efficient way to manage money transfers, domestically and abroad. It allows users to send and receive funds with just a few clicks of a button,* offering a low friction experience for global transactions without the need to look up an IBAN.

For added convenience, money can be sent globally with PayPal’s Xoom service,** making it a great option for those looking to transfer funds across borders, though an IBAN may be required.