Virtual Cards for Business Transactions Can Enable Seamless Digital Commerce Experience

Virtual cards for business transactions are becoming a lot more common because of the fast-evolving digital financial services sector. Many small business owners think that virtual payment cards are a more seamless alternative to managing physical credit or debit cards, since the latter can’t be stolen and it may be less likely that consumers’ financial details may get compromised.

An increasing number of merchants are processing virtual cards payments for business transactions, a key Fintech trend that really accelerated following the Coronavirus health crisis. In a post-COVID environment, many companies have been offering an extensive range of services via online platforms. Digital commerce sites have experienced a considerable increase in aggregate sales volume and virtual cards make it convenient for firms to conduct all-digital transactions.

Spend management for small and medium-sized businesses (SMBs) or larger corporations may become easier to manage, with companies providing virtual credit cards via user-friendly apps. It’s now expected that there will be a significant rise in contactless and digital transactions in the next 5 to 10 years. Given this transformative change in financial services, virtual cards for business should make it more efficient for firms to perform transactions in a fast-evolving digital economy.

In the coming years, many more individuals and companies will be focused on doing business in a virtual environment, which means they require a comprehensive range of viable payment solutions. According to industry experts, virtual payment cards will soon be supported by traditional financial institutions and banking challengers / Fintech platforms. Another increasingly common Fintech trend is the ability to obtain attractive cashback rewards when performing transactions with credit or debit cards. In certain cases, cashback may be offered in the form of rewards points or even virtual currencies. 

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Customers can also issue a virtual Visa debit card which allows them to spend their money for making online purchases with quick conversion to fiat currencies. This service is reportedly available to European Economic Area and UK-based consumers. Banking service providers using TSYS’ VPP now have a spend management tool, because of solutions offered by Extend Enterprises, Inc.

Recently, Marqeta reportedly integrated Mastercard Track™ Instant Pay, which is a next-generation virtual card solution that leverages machine learning and straight-through processing to enable instant virtual payment of supplier invoices. Marqeta said it will become the first processor to integrate with Track Instant Pay in the United States, enabling their clients to authorize supplier payments and manage cash flow more seamlessly.

In another recent update, it has been revealed that Sabre Corporation (NASDAQ: SABR), a software and tech provider that powers the global travel industry, and Conferma Pay, a fintech that specializes in payment technology, announced a partnership with Mastercard to accelerate the use of virtual cards for business transactions such as B2B travel payments.

The announcement builds on Sabre’s acquisition of Conferma Pay. The partnership with Mastercard is the next step in supporting Sabre’s goal to create an open travel payment ecosystem.

The ongoing digitalization of travel payments with virtual cards helps address the major challenges associated with B2B corporate travel payments. The securely generated, single use card numbers offer a link between booking and associated payments to third-party suppliers.