Why Virtual Cards Dominate B2B Payments
Virtual cards are taking over the B2B payments market, with contactless card payments reaching USD 4.1 trillion in 2019 and expected to reach USD 4.8 trillion in 2020, according to Statista. Data from Juniper Research also shows that B2B virtual cards will account for almost 80% of virtual card transactions over the next 5 years.
Virtual Cards: Safe, reliable, fast!
Also known as Single Use Accounts or SUAs, a virtual card is a one-time use, auto-generated credit card number that is sent by an AP department to their suppliers. These details can only be used once and only for the amount specified, which provides buyers control, convenience and security. The inherent safety and protection against fraud with this payment mechanism is pretty obvious.
Virtual card payments are also virtually instantaneous and speed is critical in today’s atmosphere. Most suppliers do not want to wait for, and cannot afford to wait for, paper cheques to be drawn up, processed and realized. The whole process can also be fully automated, so that no sooner an invoice is generated by a buyer’s AP department, their virtual card platform will automatically email the required details to the supplier.
Great for Mobile
Mobile platforms love virtual card payments and make them even easier, with Accenture forecasting that virtual card usage on mobile devices alone will grow by 43% to USD 42 billion by 2022. Integration with other services such as mobile wallets, is another huge draw for B2B virtual transactions to move to mobile. This is no wonder as Juniper Research forecasts that digital wallet users will increase from 2.3 billion in 2020 to nearly 4 billion or 50% of the world’s population by 2024.
Gearing for the Future
It is time for everyone to understand the value and importance of virtual cards for B2B payments, especially in the future. Euro Exim Bank provides comprehensive virtual card services to its customers using the latest cutting-edge technology to enable seamless, safe and fast global payment settlements.