Virtual cards were a niche payment method that, over the course of a few years, have become a mainstream financial product among both individuals and businesses. Their use is increasing, and no lockdown period or demand has changed that since the need to provide safety, added convenience, and digital-first payment services spurs this trend to new heights. It is time to discuss the figures, the tendencies, and the main drivers of the industry that experienced a viral growth in terms of virtual card usage.
The Virtual Card Market in Numbers
The figures speak for themselves:
- Global Market Size – Grand View Research values the virtual card industry at $15,000, with expectations of a 20%+ CAGR that will surpass $37 billion by 2028.
- Business Adoption – More than 60 percent of the Fortune 500 companies are currently utilizing virtual cards for some corporate expenditures.
- Fraud Prevention Impact – Studies indicate that virtual cards are able to minimize online payment card fraud by up to 80 percent in comparison to conventional cards.
- Consumer Awareness – In 2020, less than 15% of consumers had ever heard of virtual cards. That figure is projected to exceed 60 percent in 2025.
Why is Usage Skyrocketing?
1. Online Shopping Boom
The emergence of e-commerce has set up the same demand for safeguarded internet transactions. A virtual card enables shoppers to disguise their actual account details, thereby minimizing theft.
2. Subscription Economy Growth
Whether it comes in the form of streaming services or software tools, our purchasing behavior is ruled by subscriptions. Virtual cards allow customers and businesses to manage repeating payments as well as avoid nuisance renewals.
3. Remote Work & Global Teams
Companies having far-flung workforces are also issuing virtual cards to pay for travel, software, and office supplies so that the transaction can be controlled without delivery of physical cards.
4. Increased Fraud Awareness
As high-profile data breaches continue to make headlines, more consumers are exploring the concept of using virtual cards as a proactive form of identifying and preventing fraud.
Business vs. Consumer Adoption
- Consumers make personal purchases with the help of virtual cards, subscriptions, vacation bookings, and single purchases.
- Businesses utilize them to automate vendor payment solutions, cross-team budgets, and use them with accounting software to track expenses more effectively.
Both groups can easily create unlimited cards through platforms such as OnlineCheckWriter and obtain them instantly.
Case Study: Pandemic Acceleration
With the COVID-19 pandemic, the rate of physical interactions fell drastically, and the rate of online transactions had rocketed. Virtual card adoption increased more than 50 percent year over year across 2021 alone, and numerous firms discovered that they could issue, manage, and cancel cards without making a single trip in person.
Future Outlook
Industry professionals estimate that 60 percent of all online B2B businesses will be conducted with the use of virtual cards by 2030. This tendency is expected to only increase as there is a shift towards a more digital global payment system.
Final Thoughts
The statistics speak loudly enough: virtual cards do not belong to the trend; they are instead the future of safe payments. All one needs is to be an individual seeking to shop safely or a business that wishes to regulate expenditure in this regard to adopt the technology at hand.
The OnlineCheckWriter Virtual Card will allow you to quickly issue cards in seconds, monitor all of your transactions, and make sure you stay ahead in an ever-evolving payment environment.
