by 2027 Online Card Payments will Reach $13.8 Trillion by 2027
- Peter Johnson
- Dec 12, 2023
- 2 min read
Virtual payment cards, also referred to as temporary cards, feature randomly generated numbers associated with a payment account which act as a substitute for genuine payment information when processing payment transactions.
An online payment tool having attributes similar to those of a Credit or Debit card is what is referred to as a virtual card. It is composed of a 16-digit card number, an expiration date, and a CVV figure.
Digitized versions of physical cards, as well as cards that only exist in virtual form, can be stored in digital wallets. A defining characteristic of virtual cards is their heightened security protections.
Juniper Research predicts that global virtual card spending will grow by 355 percent in the next five years, from $3.1 trillion in 2023 to 2028.
The use of API-based virtual card issuing platforms is projected to be a major factor in the growth of the business.
Analysts at Juniper delved into the circumstances where virtual cards employ provisional card numbers related to an existing payment account, with the intention of dealing with online payments.
Additionally, it was found that virtual cards offer a protected and speedy method of dispersing capital, while effectively controlling payment expenditure ceilings.
Using API-based virtual card issuing makes creating cards easier and more affordable, leading to greater efficiency and more options for payments between businesses and customers.
According to Juniper Research's recent evaluation, Stripe, Revolut, and Marqeta have become the dominant players in the world of virtual payment cards.
Analysts from Juniper found that the most critical elements associated with successful deployment of cards and management of spending restrictions are intuitive, API-based platforms with user-friendly features.
Daniel Bedford, a research analyst at Juniper Research, mentioned that virtual cards offer a tailored answer that has many customization options, such as spending caps and regulations - this could assist companies in managing their budgeting better and decrease costs.
Juniper Research suggests that vendors stand out in the fiercely competitive environment of consumer virtual cards by providing loyalty- and rewards-connected cards.
The Juniper analysis states that providing exclusive offers on partner products, rewards points, and cashback on specific merchants can be effective in stimulating virtual card spending and maintaining customer loyalty.
Virtual card platforms will need to construct a collaboration system, either working with merchandisers directly or by affiliating with already existing loyalty programs.
Although virtual cards have become increasingly popular and are being used in more and more applications, some areas of the digital economy have not yet seen the advantages. Examples are fleet and mobility management, B2B travel expenses, purchases, procurement, marketing and advertising campaigns.
Additionally, great prospects exist for the utilization of virtual cards in financial services markets and the accounts payable sector of the commercial industry.
This content was initially put out at https://blog.geoactivegroup.com on December 11, 2023.
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