10 reasons why Virtual Wallet is the smarter way to manage Direct Payments

Recent events have highlighted some of the issues with using pre-paid cards. One platform was down for days, with Funding Authorities and individuals left in the lurch, unable to pay carers or manage their direct payments . In the same week, a BBC news article highlighted how funds on some pre-paid cards were being misused, with funds being spent on gambling. 

Managing Direct Payments shouldn’t be complicated, risky, or time-consuming. Yet for many individuals and funding authorities, traditional tools like bank accounts and pre-paid cards fall short of delivering the control, transparency, and support needed. That’s why Virtual Wallet was created - a platform designed specifically for Direct Payments, with features that make life easier for everyone involved.

Here’s 10 reasons why Virtual Wallet is the clear choice over conventional methods:

1. Purpose-built for direct payments

Unlike high street bank accounts or pre-paid cards, Virtual Wallet is designed from the ground up to support Direct Payments. It includes features tailored to recipients, such as:

• Online timesheets for Personal Assistants (PAs)
• Integrated payroll
• PA Finder tool

These are tools you simply won’t find with traditional financial products.

2. Spend aligned to budget and plan

Virtual Wallet is configured with the individual’s agreed budget and support plan, ensuring that spending stays aligned with what’s been approved by the funding authority. This reduces the risk of misuse and simplifies oversight.

3. Intelligent budget management

Virtual Wallet tracks incoming funding, pending transactions, as well as available funds, helping users avoid overspending and stay in control of their finances.

4. Detailed spend tracking

Forget vague summaries on a bank statement or receipt - Virtual Wallet tracks spending at a line item detail, making audits faster and more accurate. Every transaction is clearly recorded and categorised.

5. Real-time reporting for funding authorities

A dedicated reporting module allows funding authorities to view transactions and balances at any time, reducing risk and ensuring transparency (even in the unlikely event of platform downtime).

6. Flexible access for families and support networks

Need to share access? Virtual Wallet offers read-only access for family members or trusted individuals, supporting collaborative care without compromising security.

7. Fast, supported onboarding

New users can be set up within 5 working days, with a dedicated, friendly onboarding team to guide them through the transition. That means less stress and more confidence from day one.

8. Dedicated account management

Funding authorities benefit from a named Account Manager who’s always available to answer questions and provide support - no more chasing generic helpdesks.

9. FCA-regulated and secure

Most support organisations rely on the accreditations of the bank or pre-paid cards that they use to deliver managed accounts. Virtual Wallet and our associated services (including managed accounts) are regulated by the Financial Conduct Authority (FCA), with physical funds held in a high street bank. This ensures your money is safe and the end-to-end operations are compliant and low risk.

10. Audits that take hours, not days

Say goodbye to chasing bank statements and receipts. With everything stored in the system, audits are quick and efficient. Clawbacks are actioned within 2 working days, allowing funding authorities to direct unspent funds to where they are needed. 

Virtual Wallet isn’t just a better way to manage Direct Payments - it’s a smarter, safer, and more supportive solution for individuals and funding authorities alike.