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Virtual Phone Number: What It Is, How It Works & Benefits

Juhi Parekh
Author:
green tickUpdated : January 16, 2026
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During the pandemic, VoIP and video calls surged 212%. This change didn’t just transform how businesses communicate.

Now, customers want fast answers. And virtual phone numbers deliver both, without traditional desk phoSines or an expensive setup. Just cloud-based calling that makes you look local, sound sharp, and stay always-on.

Whether you’re handling support, closing leads, or scaling across borders, a virtual number gives you the flexibility to do it better. In this post, we’ll break down what they are, how they work, where they fall short, and why they’re worth it.

What is a Virtual Phone Number?

A virtual phone number is a cloud-based number that makes sure you can dial and get calls with the aid of the internet, without gluing to any device or location.

It runs on VoIP (Voice over Internet Protocol), which means calls go over the internet. You can take or forward calls from your laptop, mobile device, or any phone you already use.

And because it’s not tied to one location, it moves with you. Remote team? Global clients? Doesn’t matter, your number stays consistent. You can send texts, route calls, set custom voicemail rules, and manage it all online.

All in all, it’s flexible, scalable, and built for how business works now.

DID YOU KNOW?
  • A business implementing VoIP technology can benefit from average savings between 30% to 50%.

How Do Virtual Phone Numbers Work?

A virtual phone number doesn’t rely on traditional phone lines. Instead, it runs on VoIP (Voice over Internet Protocol), which means calls travel over the internet rather than physical wires. This allows you to receive calls on any device and from any location, without being tied to a single office or phone.

Step 1: A customer dials your virtual phone number

When someone calls your virtual number, the experience is exactly like calling a regular local, mobile, or toll-free number. The caller doesn’t need any special app or internet connection.

Step 2: The call is routed via the internet (VoIP)

The caller’s voice is instantly converted into digital data and securely transmitted over the internet. The system automatically manages the routing in the background, ensuring smooth and reliable call delivery.

Step 3: The call is forwarded to your chosen device

The virtual phone system forwards the call to the device you’ve selected—such as a mobile phone, laptop (softphone), desk phone, or even a traditional landline. You can create smart call rules, including:

  • After-hours call forwarding
  • Routing VIP callers to specific teams
  • Auto-sending missed calls to email
  • IVR and call distribution settings

Step 4: You answer the call from anywhere

You receive and answer the call from wherever you are, as long as you have an internet connection. The technology stays invisible, so your communication flows effortlessly.

Virtual phone numbers are smart, flexible, and built for how modern teams work – offering seamless connectivity without hardware, location limits, or complexity.

Types of Virtual Phone Numbers (With Real-World Examples)

Not all virtual numbers work the same way, and that’s their specialty. Whether you’re trying to establish a local presence, go global, or build a brand, there’s a type that fits.

Below are the four main types of virtual phone numbers, with real use cases:

TypeWhat It DoesExampleIdeal For
Local NumberCreates trust with a local area code(305) 555-1234 (Miami)Local businesses, service providers
Toll-Free NumberAllows anyone call you for free1-800-HELP-NOWNational support lines, customer care
Vanity NumberBranded, easy-to-remember phone number1-800-CAKES-NOWE-commerce, campaigns, brand recall
International NumberMakes your business look local in other countries+44 20 7946 0123 (UK)Global teams, cross-border services

1. Local Numbers

Local numbers give you an area code that matches the city you want to target, even if you’re not physically there. It’s a simple way to boost answer rates and build trust with customers who prefer calling “local” businesses.

Example: An Austin-based real estate firm serving Miami clients can use a (305) number to give the impression of being local.

2. Toll-Free Numbers

Toll-free numbers allow clients to call you at no cost. They’ve been around forever, and they still work, especially for support teams and national businesses that want to reduce customer friction.

Example: A U.S. insurance company offering 24/7 support might use 1-800-HELP-NOW for instant credibility and reach.

3. Vanity Numbers

These are your brand’s phone number and billboard in one. Instead of a random string of digits, vanity numbers spell out a word that’s relevant to your business, making it easier to remember and market.

Example: A bakery launching nationwide delivery might use 1-800-CAKES-NOW in their ads and packaging.

4. International Numbers

Want to serve global customers like a local? International virtual numbers let you create a regional presence in any country, without actually being there. It’s a low-cost way to break into new markets and support overseas clients.

Example: A digital marketing agency in India working with clients in the UK might use a +44 virtual number with a London area code.

Virtual Phone Number Lookup

  • local-icon Local
  • Toll-free-icon Toll-free
  • mobile-icon Mobile
Number Type Capabilities
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Virtual Phone Numbers vs Traditional Landlines

Trying to decide between going virtual or sticking with landlines? Here’s how both options stack up side by side:

FeatureVirtual Phone NumbersTraditional Landlines
TechnologyCloud-based (VoIP)Hardware-based
LocationNot tied to a specific place, works anywhere with internetFixed to a physical address
Call RoutingEasily forward calls to mobiles, desktops, or any deviceLimited or manual routing
FlexibilityPerfect for remote teams and multi-location businessesStatic, not designed for mobility
SetupFast, no physical installation requiredRequires physical lines and hardware
CostUsually lower and more scalableHigher maintenance and hardware costs
Ideal ForModern, distributed, or growing teamsLocal offices with fixed operations

Get a Virtual Phone Number for Your Business!

CallHippo makes it easy to set up virtual phone numbers with call routing and global coverage.

Essential Features of a Virtual Mobile Number

Virtual or local phone numbers aren’t just about making and receiving calls; they’re built to support how modern teams actually work. From automation to smarter routing, these features make sure your communication setup is efficient, professional, and easy to scale.

1. Call Recording & Transcription

Every call gets saved and turned into searchable text with call transcription. So instead of guessing what was said or sending vague follow-up emails, you’ve got the exact conversation on record, word for word.

2. Call Forwarding

Never miss a business call with this feature. Route incoming calls to your mobile, office line, or teammate’s number. Plus, set rules like forwarding only after business hours or based on who’s available.

3. Virtual Receptionist

Say goodbye to the traditional receptionist desk. A virtual receptionist greets callers, routes them to the right person, and handles basic inquiries, so your team stays focused, and your customers get quick answers.

4. Business Texting

Don’t limit your business communication to cell phone calls. Virtual SMS number allows you to send appointment reminders, updates, or support replies directly from your business number via text and keep it all in one place.

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Pro-Tip

Always prefer a VoIP provider that allows you a mixture of varying features like call recording, texting, recording, and auto-attendants. This type of flexibility will save you time and budget, even if your team grows in the future.

Benefits of Using Virtual Numbers

The cloud-based virtual numbers are fundamental for the permanent benefits such as cutting costs and magnifying the quality of business communication. In fact, current projections estimate that the VoIP market is projected to touch $236 million in 2028.

Here are the major benefits of virtual phone numbers:

1. Global Presence without Physical Presence

Virtual numbers let you build a local presence anywhere. You can set up numbers in any country or city, no physical office required. It’s how modern brands expand reach without scaling costs.

2. Cost-Effectiveness

Traditional phone systems are packed with hardware and setup fees. Virtual phone line skips all that, no installation, no maintenance. Just one flat cost for everything you need.

3. Scalability and Flexibility

Hiring more people? Adding new markets? You don’t need to overhaul business phone systems. Just add a number, redirect business calls, and go. Virtual systems grow with you without any IT headaches.

4. Integration with CRM and Support Tools

Virtual numbers integrate easily with CRMs, help desks, and AI assistants. That means smoother workflows, less app-switching, and optimal visibility into all client conversations.

5. Data-Backed Decisions

Your phone should give you critical data for decision-making. Get a virtual phone number with real-time call analytics, track call patterns, and turn conversations into business insights with VoIP. You can never expect these features in traditional phone numbers.

6. HD Call Quality

By leveraging VoIP, virtual numbers often have clearer audio than a physical phone line, even for international calls. It allows your team to communicate, so that your customers can stay engaged confidently.

Virtual Phone Number
Get a reliable Virtual Phone Number to stay connected anytime, anywhere.

Common Use Cases (Business + Personal)

If you’re selling, scaling, or supporting, you need a free virtual phone number provider. Whether you’re a solo founder or leading a 200-person remote team, virtual numbers give you flexibility and control.

1. For Sales, Support & Marketing

Sales teams use calling extensively, but managing multiple deals, demos, and follow-ups can become chaotic quickly. With virtual numbers, you can track every lead source, set up local numbers for higher pickup rates, and route calls to whoever’s free.

Customer support can be way smoother with VoIP. Instead of juggling shared inboxes or missing calls, you can route issues based on priority and keep your team aligned without burning out your agents.

And for marketing, you can use different numbers to test landing pages, measure campaign ROI, or create toll-free lines for specific goals. So, you can understand which ad is performing well and which needs your attention.

Quick Tip:
  • Use dynamic number insertion to assign different virtual numbers to different ad campaigns. It’ll show you exactly which channels are driving real calls, not just clicks.

2. For Startups, E-Commerce Brands & Remote Teams

Startups prefer virtual numbers for one reason: speed. You can get a virtual number in minutes and go live with a company phone system without hardware, an IT team, or any waiting. Need to scale support across time zones? Add international numbers with a few clicks.

E-commerce teams use them to add a human touch to digital storefronts. It builds trust when customers can actually speak to someone, without the hassle of calling an overseas number.

Even remote teams benefit from virtual numbers. Your support representatives in India, sales lead in London, and operations manager in Austin can all work under one unified system, with local numbers for each market. So, no one needs to know you’re not present locally.

How Much Does a CallHippo Virtual Phone Number Cost?

PlanBasicStarterProfessionalUltimate
PriceStarts at $0/user/moStarts at $18/user/moStarts at $30/user/moStarts at $42/user/mo
Includes TelephonyNoYesYesYes
Unlimited MinutesNoYesYesYes
SMS per MonthNo1005001000
Free Virtual Phone NumberNo111
Call RecordingNoNoYesYes
Dedicated Account ManagerNoNoNoYes

You May Also Read : How to Get an Asia Phone Number?

How to Get a Virtual Phone Number With CallHippo?

CallHippo is a cloud-based virtual phone number provider that allows you to connect with your prospects and streamline business communication. The process to buy an online phone number from CallHippo is extremely simple. Here are the main steps:

  • Visit the CallHippo website and sign up.
  • Select the country where you want your virtual number (e.g., US, UK, Canada) and then choose between a local or toll-free number.
  • Choose the pricing plan that fits your requirements and complete the payment process.
  • Once the payment is processed, you can configure your CallHippo account.
  • You can now use your virtual phone number for business communication.

Wrapping Up

The way we work with businesses has changed. Fast-moving teams don’t have time for overpriced hardware. They need tools that scale and work wherever the team is.

Virtual phone numbers exactly do that. Whether you’re bootstrapping a startup, scaling a support team across time zones, or running campaigns that need trackable results, they give you what legacy systems can’t: control, visibility, and speed.

Ready to sound more professional, show up like a local, and scale like a global brand? Then, it’s time to explore virtual phone number apps.

FAQs:

1. Can I use a virtual number for WhatsApp?

Yes, and it’s a smart move. Most virtual numbers work with WhatsApp Business, so you can separate personal and business chats while keeping them all on your phone. Just make sure your provider supports SMS verification.

2. Can I port my virtual phone number?

Yes. Most reputable VoIP providers will let you port your number, but check the agreement. Some may charge a fee or have strange lock-in clauses.

3. What are the top virtual phone number providers?

Some of the top virtual phone number providers include CallHippo, RingCentral, Grasshopper, Google Voice, and TextNow. Check out this list of the best virtual phone number providers in India if that’s where your audience (or team) is based.

4. Are virtual phone numbers safe to use?

Mostly, yes. If you get one from a big-name, trusted provider, they’ll have encryption and proper security in place. The issues come when you use a shady or unknown service. Read reviews first, as it’s worth the extra five minutes.

5. How do I choose a good provider?

Don’t just go for the cheapest. Look for stable call quality, the exact features you’ll actually use (like call forwarding or voicemail), and responsive support. And if they offer a trial period, test it before you commit.

6. Virtual number vs. VoIP: What’s the difference?

Think of the virtual number as your “address” and VoIP as the “road” that delivers your calls. A virtual number isn’t tied to one phone line, and VoIP is the tech that sends your voice over the internet.

7. How does call routing work?

When someone dials your number, the service forwards the call to your preferred location: your mobile, office phone, or computer. You can also set different rules for different times of day.

8. What is a Temporary Phone Number?

A temporary phone number is a virtual number you can use for a short time to keep your personal number private. It works online without a SIM card and is often used for short projects, traveling, or customer communication.

9. What’s the easiest way to find out who called me?

Start with free lookup tools like Truecaller or Spy Dialer for quick identification. Then, expand your search using social media profiles or Google with the person’s name and location to increase your success rate.

10. What is a restricted call?

A restricted call is when the caller deliberately hides their number from the recipient’s caller ID. The screen may display “Private Number,” “No Caller ID,” or similar instead of the actual number.

Published : August 8, 2025

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